Hexcel shares downgraded, price target cut by BofA Securities
Investing.com | Editor Ahmed Abdulazez Abdulkadir
Published Apr 10, 2024 09:14AM ET
On Tuesday, BofA Securities revised its rating for Hexcel Corp . (NYSE:HXL), downgrading the stock from Neutral to Underperform. This adjustment follows the company's unexpected leadership change announcement after the market closed on Monday. The new price target set by the firm is $65.00, a decrease from the previous target of $75.00.
Hexcel, a key player in the aerospace industry, disclosed that Tom Gentile, the former CEO of Spirit AeroSystems (NYSE:SPR), will take over as CEO and President of Hexcel starting May 1, 2024. The announcement came as a surprise to the market, as there were no prior communications about the company's search for new leadership.
The firm expressed concerns over how the market might react to the sudden management change. The analyst from BofA Securities noted that the unexpected nature of the CEO transition could lead to a negative perception among investors. This sentiment is rooted in the belief that Hexcel may not regain its historical market premium until the new CEO proves effective and the management transition is complete.
The company's stock rating and price target revision reflect the analyst's caution regarding Hexcel's near-term prospects. It suggests that until the new leadership demonstrates its capability, investors might remain skeptical about the company's future performance.
Hexcel's upcoming leadership change marks a significant moment for the company, as it prepares to welcome Gentile to his new role.
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