Wells Fargo Starts Huntington Ingalls (HII) at Market Perform, Margin Growth Not Expected Until 2013
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Price: $327.71 --0%
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
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Wells Fargo initiates coverage on shares of Huntington Ingalls (NYSE: HII) with a Market Perform rating and a valuation range of $42-$44.
The company has the potential to generate solid revenue, EPS, and cash flow from performance improvements over the next several years. The firm believes that the company will begin seeing some strong margin improvements once 2013 comes and beyond.
The firm reports that HII expects that it can increase its operating margins in this segment such that company margins are above 9% from the current company average about 6% margins and Gulf Coast’s sub-2% margins.
Wells Fargo comments that, "we believe this long-term backlog gives the company unique visibility into its out-years revenues and cash flows."
Wells Fargo is releasing its 2011 and 2012 ESP estimates at $3.90 and $4.30 while its revenue estimates are at $6,425M and $6,475M.
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 $40.04 yesterday.
The company has the potential to generate solid revenue, EPS, and cash flow from performance improvements over the next several years. The firm believes that the company will begin seeing some strong margin improvements once 2013 comes and beyond.
The firm reports that HII expects that it can increase its operating margins in this segment such that company margins are above 9% from the current company average about 6% margins and Gulf Coast’s sub-2% margins.
Wells Fargo comments that, "we believe this long-term backlog gives the company unique visibility into its out-years revenues and cash flows."
Wells Fargo is releasing its 2011 and 2012 ESP estimates at $3.90 and $4.30 while its revenue estimates are at $6,425M and $6,475M.
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 $40.04 yesterday.
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