BofA downgraded Hexcel (HXL) to Underperform from Neutral with a price target of $65, down from $75, after the company announced that Tom Gentile, the former CEO of Spirit AeroSystems (SPR), will become its CEO on May 1. The firm, which calls the announcement of the CEO transition “surprising,” thinks the news could be poorly received by the market given that the company had not communicated previously that it had been pursuing new leadership. Given that view, the firm sees it as unlikely that shares will be awarded their “historical premium” until the new management team has fully transitioned and proven itself.
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