Ronald Epstein, an analyst from Bank of America Securities, maintained the Sell rating on Hexcel (HXL – Research Report). The associated price target remains the same with $60.00.
Ronald Epstein’s rating is based on Hexcel’s recent financial performance and future outlook. The company reported first-quarter 2025 revenues of $457 million, which fell short of both Bank of America’s estimate of $470 million and Bloomberg’s $474 million. Additionally, the adjusted earnings per share of $0.37 missed expectations due to lower-than-expected operating margins, which were reported at 9.7%, below the anticipated 11.3%.
Furthermore, Hexcel’s outlook for the full year 2025 has been revised downward, primarily due to reduced aircraft production rates, notably affecting the A350 program. The updated revenue forecast now stands between $1.88 billion and $1.95 billion, a decrease from the previous range of $2.05 billion to $2.25 billion. These factors, combined with the potential impact of new tariffs, have led Epstein to maintain a Sell rating, anticipating that these results may not be well-received by the market.
Epstein covers the Industrials sector, focusing on stocks such as Boeing, Rocket Lab USA, and Aercap Holdings. According to TipRanks, Epstein has an average return of 12.0% and a 59.19% success rate on recommended stocks.
In another report released on April 11, Morgan Stanley also maintained a Sell rating on the stock with a $50.00 price target.