03:31 PM EDT, 08/14/2024 (MT Newswires) -- Hexcel ( HXL ) is bracing for continued pressure next year from slower-than-expected aircraft production increases, RBC Capital Markets said in a note Wednesday.

"We see continued risk to the pace of production increases at both Airbus and Boeing ( BA ) , which will limit the pace of growth into 2025," RBC said.

Hexcel ( HXL ), which manufactures materials for the commercial aerospace industry, lowered its 2024 guidance when it released its Q2 results in July.

The company, however, "did not fully address concerns about the implied ramp to deliver on its mid-term guide," RBC said. "We believe management could have taken the opportunity to reduce mid-term expectations even further, providing somewhat of a clearing event."

RBC downgraded the stock to sector perform from outperform and lowered its price target to $68 from $76.

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