Deutsche Bank Starts Huntington Ingalls (HII) at Hold, Sees 25% Earnings Growth Over Next 3 Years
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Price: $273.08 +0.69%
Rating Summary:
12 Buy, 8 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 14 | New: 16
Rating Summary:
12 Buy, 8 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 14 | New: 16
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Deutsche Bank initiates coverage on shares of Huntington Ingalls (NYSE: HII) with a Hold rating and $40 price target.
The company is still in the restructuring stage and needs to find a way that it can continuously deliver solid earnings and cash flow.
The company's hardest problem remains in its Gulf Coast shipyards which make up 45% of its total sales. A decade of hurricane susceptibility and poorly structured fixed-price contracts have led to fits and starts at the yards.
If things in the Gulf go well, the firm sees HII experiencing 25% earnings growth over the next three years, although the company has not released any guidance.
Deutsche reports that, "Navy shipbuilding hasn’t seen its funding climb as materially as other parts in the budget, which should afford shipbuilders some comfort about the sustainability of current spending rates. We are less optimistic about the Navy’s full-blown spending plans, but do see shipbuilding as one piece of the budget that has the political support and a stated plan of growth."
For more ratings news on Huntington Ingalls click here and for the rating history of Huntington Ingalls click here.
Shares of Huntington Ingalls closed at $41.50 yesterday.
The company is still in the restructuring stage and needs to find a way that it can continuously deliver solid earnings and cash flow.
The company's hardest problem remains in its Gulf Coast shipyards which make up 45% of its total sales. A decade of hurricane susceptibility and poorly structured fixed-price contracts have led to fits and starts at the yards.
If things in the Gulf go well, the firm sees HII experiencing 25% earnings growth over the next three years, although the company has not released any guidance.
Deutsche reports that, "Navy shipbuilding hasn’t seen its funding climb as materially as other parts in the budget, which should afford shipbuilders some comfort about the sustainability of current spending rates. We are less optimistic about the Navy’s full-blown spending plans, but do see shipbuilding as one piece of the budget that has the political support and a stated plan of growth."
For more ratings news on Huntington Ingalls click here and for the rating history of Huntington Ingalls click here.
Shares of Huntington Ingalls closed at $41.50 yesterday.
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