HXL - Hexcel's Price Anticipates The Eventual Recovery

• Hexcel posted a slight revenue miss on sharply lower commercial aerospace demand, but segment profits held up a little better than expected.
• Hexcel has adequate liquidity to participate in the eventual recovery; narrowbody production could recover by year-end, but a widebody recovery may be more of a 2022 driver.
• Fleet retirements and long-term travel demand growth will support healthy demand for new jets, but it will take several years for that demand to materialize.
• Hexcel's valuation seems to already adequately reflect the company's recovery prospects over the next three to five years.

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