Wolfe Research downgraded Hexcel Corp. (HXL) from Outperform to Peerperform. The firm cited valuation concerns following the stock's 40% year-to-date increase. Hexcel shares reached the analyst's previous price target of $101. Wolfe noted a potential disconnect between Hexcel's A350 program shipments and actual Airbus production.
Hexcel recently reported second-quarter sales of $529 million, an 8% year-over-year increase. Adjusted earnings per share reached $0.66, exceeding analyst estimates. The company raised its full-year 2026 guidance for both sales and adjusted EPS. Demand for wide-body aircraft like the Airbus A350 and Boeing 787 drives long-term growth. Investors expressed concerns regarding ongoing cost pressures and the pace of margin improvements.