HXL - Hexcel Corporation: The Recent Downgrades Make Sense

2024-04-15 16:15:45 ET

Summary

• Hexcel Corporation's stock plunged after the appointment of a new CEO, raising concerns about quality control issues.
• The recent safety concerns and production slowdown at Boeing could also impact Hexcel, a key supplier of carbon fiber composites.
• The stock's valuation is not attractive, and there are potential downside risks, leading to an analyst downgrade and a recommendation to sell.

Hexcel Corporation ( HXL ) is a maker of carbon fiber and other products which are used to manufacture aircraft as well as other applications. This company recently appointed a new CEO, and the stock plunged on this news. I wanted to take a closer look to see if the big drop was a potential buying opportunity. This company has a fairly unique role in supplying carbon fiber composites and numerous patents. It is also benefiting from the demand for aircraft, as is shown below:

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