Friday, February 4, 2022

Hexcel Needs To Offer More Than Just A Widebody Recovery Story

 

Ahead of what may well strike some readers as a negative review of Hexcel (HXL), I want to be clear about one thing from the outset – I think Hexcel management has done a good job here. I do think there are some significant issues that investors have to consider, and some real challenges ahead for management, but when it comes to operating the core business, I don’t really have a lot of complaints.

That said … Hexcel is very much tied to the recovery in the widebody aircraft market, and though I view that as a “when, not if” question, I think the value of that recovery is already reflected in the shares. I thought the same at the time of my last update, and the shares are about 13% lower now. In my view, for the stock to offer really appealing long-term potential, the management must find new markets/offerings for growth.

 

See the full article here: 

Hexcel Needs To Offer More Than Just A Widebody Recovery Story

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