In a report released yesterday, Ronald Epstein from Bank of America Securities maintained a Sell rating on Hexcel, with a price target of $60.00.
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Ronald Epstein has given his Sell rating due to a combination of factors impacting Hexcel’s financial performance. The company’s third-quarter earnings per share fell short of Bank of America’s expectations, primarily due to weaker-than-anticipated margins in the Composites segment. Although revenue slightly exceeded forecasts, the operating margin was significantly lower than expected, which was a key concern.
Additionally, Hexcel revised its full-year 2025 outlook downward, citing the adverse effects of tariffs. The anticipated revenue and adjusted EPS are now at the lower end of previous estimates, further contributing to the cautious outlook. The departure of the company’s CFO also adds an element of uncertainty to Hexcel’s future performance. These factors collectively underpin Epstein’s decision to maintain a Sell rating on the stock.
HXL’s price has also changed moderately for the past six months – from $48.310 to $63.740, which is a 31.94% increase.