UPDATE: Goldman Sachs Upgrades Hexcel Corporation to Buy, Raises PT

In a report published Monday, Goldman Sachs Group upgraded its rating on Hexcel Corporation

from Neutral to Buy, and raised its price target from $29.00 to $35.00. Goldman Sachs noted, “We upgrade shares of Hexcel (HXL) to Buy from Neutral with 22% upside to our 12-month $35 price target. We believe Hexcel will be a large beneficiary from the share shift to composites from metal on next-generation large commercial aircraft (i.e., the 787 and A350), which generates excellent visibility into several years of double-digit organic revenue growth. But HXL is also now moving from several years of capacity investment to support that growth, into the harvest phase. We expect CapEx to decline steadily and free cash and returns on capital to improve significantly. HXL has already shown it is willing to deploy cash in a shareholder friendly manner.” Hexcel Corporation closed on Friday at $28.69.