Hexcel Corporation (NYSE:HXL) seems to be taking “full advantage” of the post-COVID commercial recovery, according to BofA Securities.
The Hexcel Analyst: Ronald Epstein upgraded the rating for Hexcel from Underperform to Buy and raised the price target from $45 to $65.
The Hexcel Thesis: The company has reported three consecutive quarters of double-digit revenue growth in the commercial aerospace end market and margin expansion at both composite materials and engineered products, Epstein said in the upgrade note.
“Despite its exposure to widebodies, the company’s operational fortitude motivates us to believe that there is considerable upside through the commercial recovery, given that WB volumes have yet to rebound and remain well below pre-COVID levels,” he added.
The board of directors has reinstated a quarterly dividend of 10 cents per share, which is “a sign of improving post-pandemic conditions at the company,” the analyst further wrote.
HXL Price Action: Shares of Hexcel had risen by 1.76% to $56.66 midday Wednesday, according to Benzinga Pro.
