UPDATE: Topeka Capital Markets Initiates Hexcel Corporation at Buy on Growth Prospects

Topeka Capital Markets initiated Hexcel Corporation

with a Buy rating and a $38.00 price target. Topeka Capital Markets said, "An investment in HXL represents a play on two fundamental trends: 1) sustainable strength in the favorable global commercial aircraft demand cycle, and; 2) the continued secular penetration of carbon fiber composites – displacing traditional materials – in advanced aircraft designs and production. These two considerations, coupled with increasing build rates for advanced aircraft, should drive strong demand for HXL's materials, translating into improving mix, favorable operating leverage, and attractive double-digit EPS growth. Given these positive and sustainable growth prospects, we find HXL's risk/reward compelling at the current valuation." Hexcel Corporation closed at $28.27 on Monday.