Hexcel upgraded to Equal Weight from Underweight at Morgan Stanley

Morgan Stanley upgraded Hexcel (HXL) to Equal Weight from Underweight with a price target of $90, up from $67, following the “positive” Q4 report. The company’s operating margins appear to have bottomed supported by improving commercial production rates, the analyst tells investors in a research note. The firm sees Hexcel posting 27% annual earnings growth through 2028, well ahead of peers at roughly 13%. The shares warrant a higher multiple due to Hexcel’s stronger relative growth and greater visibility into a commercial ramp, contends Morgan Stanley.