Research Alert: CFRA Maintains Hold Recommendation On Shares Of Hexcel Corporation
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We increase our 12-month target price by $7 to $97, or 31.7x our 2027 EPS estimate, vs. HXL's three-year average forward P/E of 30.5x and peers' 36.5x. We raise our 2026 EPS estimate by $0.08 to $2.36 and 2027's by $0.10 to $3.06. Hexcel's Q1 results underscore a robust fundamental outlook, stemming from a strengthening commercial aerospace recovery. Commercial aerospace sales surged 18.8% Y/Y, fueled by rising build rates for key programs like the Airbus A350 and A320, and the Boeing 787 and 737 MAX, with A350 production expected at around 80 units in 2026. This volume growth is generating significant operating leverage, with gross margin expanding to 26.9% and adjusted operating income up 49%, as the company utilizes existing capacity. While Defense, Space & Other sales declined due to a prior divestiture, missile-related demand is expected to accelerate in 2H 2026. Hexcel is well positioned as a leading composites supplier, benefiting from increasing composite penetration in aircraft for fuel efficiency.
