UPDATE: D.A. Davidson Raises PT on Hexcel Following Positive Data Points
In a report published Monday, D.A. Davidson analyst Avinash Kant reiterated a Buy rating on Hexcel (NYSE: HXL), and raised the price target from $35.00 to $41.00.
In the report, D.A. Davidson noted, “Positive data points from B787 and A350. Newer, advanced composite aircrafts such as A380, A350, B787 and B747-8 have represented ~30% of commercial aerospace sales for Hexcel lately and have been key growth drivers as revenues from these programs were up a strong 20% in Q1:CY13 (from Q1:CY12 levels). Hexcel has approximately $1.5 million content in each B787 plane and recent comments from Boeing's (BA*-NEUTRAL-$102.48) investor day indicate the company has reached their 7-plane per month run rate goal ahead of schedule and is expected to reach its goal of 10 planes per month by November 2013. Additionally, it has become very clear that despite concerns of a slowdown in build rate due to recent battery issues, materials suppliers into the B787 program did not experience any slowdown. We point out that initial expectations of Hexcel's content in A350 had called for ~$3 million, but expectations have been rising steadily and currently call for >$4 million worth of content in every A350.”
Hexcel closed on Friday at $35.29.
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