Morgan Stanley analyst Kristine Liwag has maintained their bearish stance on HXL stock, giving a Sell rating yesterday.
Kristine Liwag’s rating is based on Hexcel’s recent financial performance, which fell short of expectations. The company’s adjusted earnings per share (EPS) for the first quarter of 2025 came in at $0.37, significantly below the consensus estimate of $0.43. This earnings miss was attributed to lower-than-expected revenue and operating margins, as Hexcel’s customers struggled with production rate increases.
Additionally, Hexcel reduced its outlook for 2025, lowering its revenue and free cash flow projections due to decreased production rates, particularly affecting the A350 program. The company’s total revenues and net income were below market expectations, and its operating cash flow was negative. Furthermore, the operating margins for both the Composite Materials and Engineered Products segments were below consensus estimates, contributing to the overall negative assessment.
In another report released yesterday, Bank of America Securities also maintained a Sell rating on the stock with a $60.00 price target.
HXL’s price has also changed moderately for the past six months – from $63.600 to $50.500, which is a -20.60% drop .