Hexcel initiated with a Hold at Deutsche Bank

Deutsche Bank analyst Scott Deuschle initiated coverage of Hexcel with a Hold rating and $70 price target. The analyst likes Hexcel’s cyclical recovery and longer-term secular penetration story and thinks there may be upside to Street free cash flow estimates through 2025. However, the firm sees the stock’s premium valuation as “fairly capturing these benefits.” In addition, strong order share momentum for Boeing on the 787 may make the business case for raising A350 rate above nine per month more challenging if it continues, the analyst tells investors in a research note.