Freedom recommends Hexcel Corporation to investors who missed out on Boeing’s rebound

Freedom Broker has put out a trade idea that investors who missed out on Boeing’s rebound may want to consider buying shares of a Boeing supplier, mid-cap Hexcel Corporation. Hexcel largely moves in line with Boeing, but it has yet to recover from recent losses.

In a note, Freedom says that investors who did not buy Boeing shares on the dip might want to consider Hexcel shares.

This smaller company mainly develops, manufactures, and sells lightweight composite materials for the aerospace industry. In 2024, its revenue grew 3.6% to $473.8 million, 15% of which came from its partnership with Boeing, Freedom notes, adding that this figure could increase in 2025 if the U.S. and Europe reach an agreement on tariffs.

Freedom points out that Hexcel tends to track Boeing. For example, after Boeing rallied in November-December, Hexcel followed suit in January.

The last time shares of both companies — and the broader market — dropped was after April 2, when Trump announced a sweeping package of tariffs. Since then, Boeing is up more than 21%, while Hexcel is still down 5%. Yesterday, May 14, the latter closed at $53.83 per share.

Freedom believes that within the next two months, Hexcel’s share price could reach $61 per share, more than 13% above current quotes.

According to MarketWatch, the average target price for Hexcel among the 23 Wall Street analysts covering the name is $60.25 per share, implying upside of almost 12% versus the last closing price. The majority of the coverage analysts — 14 out of 23 — have “hold” recommendations, while seven rate it a “buy” and two a “sell.”