Oppenheimer Maintains Perform On Hexcel In Light Of Mixed 3Q14 Results
In a reports released today, analyst William Lee of Oppenheimer maintained a Perform rating on Hexcel Corporation (NYSE:HXL), as the company reported mixed 3Q14 results, with earnings beating but sales missing expectations.
Lee said, “Hexcel’s most important business–Commercial Aerospace–was somewhat softer than our estimate as growth in new programs, albeit robust, decelerated from 1H14’s pace. Defense remained under pressure, and weaker macro conditions in Europe and Asia-Pacific certainly did not help. Industrial performance again drove to the upside, lifted by strong wind energy demand. Despite the topline shortfall, Hexcel successfully managed its operating expenses. Among the OElevered names, we believe HXL is well positioned given its outsized exposure to new programs, but multiples in this sector have compressed given bookings trends.”