Drexel Hamilton Initiates Coverage on Huntington Ingalls (HII); Pure Play on U.S. Military Shipbuilding
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Price: $55.82 +1.18%
Rating Summary:
5 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
5 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade HII Now!
Drexel Hamilton initiates coverage on Huntington Ingalls (NYSE: HII) with a Hold.
Analyst, Peter Skibitski, said, "The market sees the potential for strong earnings growth from margin recovery at the Ingalls unit, pushing the shares up over 20% year to date and valuation (forward P/E) to levels roughly inline with the S&P 500. However, we are concerned that the potential for incremental program charges are still present, as well as higher than expected pension in 2013, though cash contributions may ameliorate some of this."
"That said, our biggest concern currently is valuation, as our calculated upside using a 13x forward P/E is roughly inline with current trading levels. We would likely get more positive on the shares on weakness, on demonstrated progress on low-margin programs, or on further 2013 pension clarity."
For an analyst ratings summary and ratings history on Huntington Ingalls click here. For more ratings news on Huntington Ingalls click here.
Shares of Huntington Ingalls closed at $39.84 yesterday, with a 52 week range of $22.62-$41.55.
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Analyst, Peter Skibitski, said, "The market sees the potential for strong earnings growth from margin recovery at the Ingalls unit, pushing the shares up over 20% year to date and valuation (forward P/E) to levels roughly inline with the S&P 500. However, we are concerned that the potential for incremental program charges are still present, as well as higher than expected pension in 2013, though cash contributions may ameliorate some of this."
"That said, our biggest concern currently is valuation, as our calculated upside using a 13x forward P/E is roughly inline with current trading levels. We would likely get more positive on the shares on weakness, on demonstrated progress on low-margin programs, or on further 2013 pension clarity."
For an analyst ratings summary and ratings history on Huntington Ingalls click here. For more ratings news on Huntington Ingalls click here.
Shares of Huntington Ingalls closed at $39.84 yesterday, with a 52 week range of $22.62-$41.55.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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