Hexcel's Stock Jumps 2.1% Amid UBS Upgrade to Buy and Higher Price Target

Hexcel's stock has jumped 2.1% after UBS upgraded the aerospace and defense company to Buy from Neutral and raised its price target to $80 from $65. The investment firm expects an increase in widebody aircraft production in 2026 to drive mid-teens revenue growth and a 300 basis point margin expansion. Hexcel's shares have been relatively stable, with only three moves greater than 5% over the last year. The company's stock is trading close to its 52-week high and has returned 4.4% since the beginning of the year.

Hexcel Corporation's (NYSE: HXL) stock has experienced a 2.1% increase following UBS Group's upgrade of the aerospace and defense company to "Buy" from "Neutral," and a subsequent raise of the price target to $80 from $65. This move comes on the heels of strong earnings reports and expectations for growth in widebody aircraft production in 2026.

The investment firm cited the anticipated inflection in widebody aircraft production as a key driver for Hexcel's growth prospects. UBS analyst Gavin Parsons projects that this production increase will generate mid-teens revenue growth for Hexcel, along with a 300 basis point margin expansion. Despite challenges in the third quarter related to Airbus A350 destocking, UBS believes this period could represent a trough before a more stable multi-year aircraft production ramp begins.

Hexcel's recent financial performance has also been robust. The company 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]. 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].

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.

Hexcel's stock has been relatively stable, with only three moves greater than 5% over the last year. The company's stock is trading close to its 52-week high and has returned 4.4% since the beginning of the year.

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/