HXL - Hexcel raised to Buy at BofA on stronger than expected commercial aerospace
Hexcel (NYSE:HXL) +1.4% in Wednesday's trading after Bank of America double upgraded shares to Buy from Underperform with a $65 price target, raised from $45, citing the company's continued strength through the early stages of the commercial air traffic recovery. BofA's Ronald Epstein views Hexcel (HXL) as a pure play on commercial aerospace carbon fiber, saying "increased penetration of carbon fiber in the airframe of new aircraft derivatives like the A320neo and 737 MAX and clean sheet programs like the A350 and 787 provides long-term growth." Despite the halt in 787 deliveries, Epstein sees "an opportunity for Hexcel to continue its strong performance into the outyears as widebody volumes begin rebounding in the mid-2020s." Investing in Hexcel (HXL) is "only for the patient," as the company struggles with ongoing macro headwinds, Leo Nelissen writes in an analysis newly published on Seeking Alpha.
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Hexcel raised to Buy at BofA on stronger than expected commercial aerospace