TD Cowen analyst Gautam Khanna maintained a Hold rating on Hexcel yesterday and set a price target of $77.00.
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Gautam Khanna has given his Hold rating due to a combination of factors influencing Hexcel’s current and future performance. One significant aspect is the company’s adjustment in sales guidance, particularly concerning the A350 and 787 aircraft de-stocking. Although Hexcel has increased its shipment expectations for the A350 in the third quarter, the overall recovery pace remains slower than initially anticipated. This adjustment affects the company’s revenue projections and aligns with Airbus’s assembly rates by the end of the year.
Additionally, Hexcel’s decision to defer formal guidance for 2026 until the fourth quarter indicates some uncertainty in the company’s future sales growth, which is expected to be under 12%. The firm’s recent $350 million accelerated share repurchase program reflects confidence in its business, yet it also highlights the limited opportunities for mergers and acquisitions. Furthermore, the anticipated earnings per share for 2026 are expected to be lower than previous Street estimates, partly due to higher interest expenses and tariff impacts. These factors collectively contribute to the Hold rating, suggesting a cautious approach to the stock at this time.
In another report released yesterday, BMO Capital also maintained a Hold rating on the stock with a $67.00 price target.