Hexcel Shares Surge Following UBS Upgrade to Buy Rating

Hexcel shares rise after UBS upgrade, driven by the company's advanced lightweight composites technology for aerospace, space, and defense applications. Hexcel operates in two segments: Composite Materials and Engineered Products, offering carbon fiber, specialty reinforcements, resin systems, and composite structures. The upgrade reflects the company's strong position in the growing aerospace and defense market.

Hexcel Corporation (NYSE: HXL) experienced a significant boost in its share price following a positive upgrade by UBS Group, which raised its price target to $80. The upgrade comes amidst strong financial performance and increasing institutional ownership, reflecting the company's robust position in the growing aerospace and defense market.

UBS Group upgraded Hexcel's rating to "Buy" and increased its price target, citing the company's impressive earnings and revenue growth. Hexcel reported earnings of $0.50 per share for the last quarter, surpassing analysts' expectations of $0.46 per share, and revenue exceeded projections at $489.9 million [1]. The 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 strong 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, such as TimesSquare Capital Management LLC, Jennison Associates LLC, and Citigroup Inc., also increased their stakes in Hexcel.

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.

Hexcel operates in two segments: Composite Materials and Engineered Products, offering carbon fiber, specialty reinforcements, resin systems, and composite structures. The company's advanced lightweight composites technology is particularly suited for aerospace, space, and defense applications, reflecting its strong position in these growing markets.

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/