Hexcel downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo downgraded Hexcel (HXL) to Equal Weight from Overweight with a price target of $55, down from $63. The firm cut estimates across the aerospace group, as it thinks a global economic slowdown hits both original equipment makers and aftermarket. Wells estimates a modest economic slowdown could reduce aircraft demand by 300 basis ponits, which translates to a 6% and 10% impact to aftermarket and original equipment sales, respectively. While Hexcel “looks cheap” versus the peer group, numbers have to move lower even before the impact of an economic slowdown, as Airbus A350 appears to have been struggling to increase rate, the analyst tells investors in a research note.