UBS upgrades Hexcel to Buy, raises price target to $80.

UBS upgrades Hexcel to Buy, raises price target to $80.

UBS Group has upgraded its rating on Hexcel Corporation (NYSE:HXL) to "Buy" and raised its price target to $80, according to a recent research report. The upgrade comes after Hexcel reported earnings of $0.50 per share for the last quarter, surpassing analysts' expectations of $0.46 per share. Revenue also exceeded projections at $489.9 million [1].

The aerospace company's quarterly dividend was set at $0.17 per share, translating to an annualized dividend yield of 1.1% with a payout ratio of 62.96%. Institutional investors have shown significant interest in Hexcel, with Price T Rowe Associates Inc. MD increasing its holdings by 32.4% in the first quarter, owning 4.12% of Hexcel worth $181.51 million as of its most recent filing [1].

Other institutional investors have also increased their stakes in Hexcel. TimesSquare Capital Management LLC boosted its holdings by 416.9%, Jennison Associates LLC by 10,767.3%, and Citigroup Inc. by 214.3%. Balyasny Asset Management L.P. bought a new position valued at $14.89 million in the fourth quarter [1].

Hexcel's stock has experienced a slight downturn, trading down 1.1% on Friday, August 29, 2025, hitting $63.26. The company has a market capitalization of $5.03 billion, a P/E ratio of 58.57, and a debt-to-equity ratio of 0.53. The firm's 50-day and 200-day simple moving averages are $59.99 and $56.90, respectively [1].

UBS's upgrade follows recent analyst upgrades from Morgan Stanley, Royal Bank of Canada, and BMO Capital Markets, who have also raised their price targets and changed their ratings on Hexcel. Despite the upgrades, the stock has a consensus rating of "Hold" and an average price target of $59.22 [2].

Hexcel, which develops and markets carbon fibers and composite materials for various industries, has set its FY 2025 guidance at 1.850-2.050 EPS. The company's strong financial performance and increasing institutional ownership have contributed to the recent analyst upgrades and price target increases.

References:
[1] https://www.marketbeat.com/instant-alerts/filing-price-t-rowe-associates-inc-md-purchases-812026-shares-of-hexcel-corporation-hxl-2025-08-25/
[2] https://www.marketbeat.com/stocks/NYSE/HXL/forecast/