Hexcel (HXL) is poised to continue to benefit from its widebody aircraft exposure, as current widebody fleet dynamics support a strong aftermarket outlook, RBC Capital Markets said in a Tuesday note.

RBC said that production rates for Boeing's (BA) 787 and Airbus' A350 plans have been challenged, and that it believes that the industry is currently about 300 widebody aircraft under-supplied relative to 2021 to 2022 delivery expectations.

Hexcel continues to call out about 80 shipset deliveries for the A350 and does not see risk of any further de-stocking, RBC said, adding that it is confident in upside to the 12-per-month A350 target in 2028 but views investor expectations for potential 20 per month as unrealistic.

Additionally, the company's greater exposure to European defense is a net positive, with Europe poised to see accelerating defense spending relative to the US over the next three to five years, according to the note.

RBC maintained its outperform rating with a $115 price target.

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