Deutsche Bank Has Buy Rating On Hexcel Corporation (HXL)

Deutsche Bank has a Buy rating and a $27 price target on shares of Hexcel Corporation (NYSE: HXL). In a note to clients, Deutsche Bank writes, "A press report (FT) out yesterday noted that Boeing "will definitely give...a strong indication" on the future direction of its 737 program at the Paris Air Show in June, citing the general manager of the 737 program. Of several options likely on the table, those highlighted in the report are plans for an all‐new aircraft with a main body made of the plastic composites (similar to the 787) and a new twin‐isle aircraft (dubbed as the "new light twin"). Either option is likely to have significant positive long‐term implications for Hexcel (25% of total sales are to Boeing commercial), with our estimate of potential incremental revenue opportunity of at least $700K/shipset (we est. ~300K of content/aircraft on the current B737 moving to at least $1M on an all‐new composite‐based 737). This would result in $250M‐$300M of incremental revenue to HXL based on current 737 production rates (~20% of HXL's estimated 2011 total sales)." Shares of HXL gained $1.70 yesterday to close at $21.28, a gain of nearly 7%.