UPDATE - Barclays Initiates Coverage on Huntington Ingalls (HII) with an Equalweight; Tacking Into the Wind
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Price: $298.20 -1.06%
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Barclays initiates coverage on Huntington Ingalls (NYSE: HII) with an Equalweight. PT $33.00.
Barclays analyst said, "When HII was spun from Northrop Grumman (NYSE: NOC) in March, we found a range of views from both the sell side and buy side, with the debate centered on HII's ability to turn around its poorly performing Gulf Coast shipyards; the bullish view accepted this as an achievable goal and valued HII on a higher "normalized" earnings. Bears concluded that the benefits of a turnaround were too distant and uncertain to incorporate, and they focused on the relatively poor near-term earnings, ascribing a lower value to HII. At that time, post-spin valuations by sell siders ranged from $18 to $56. We had a $33 post-spin value (the same as our current target), believing that the longer-term improvement, while compelling, was fraught with risk."
Barclays analyst said, "When HII was spun from Northrop Grumman (NYSE: NOC) in March, we found a range of views from both the sell side and buy side, with the debate centered on HII's ability to turn around its poorly performing Gulf Coast shipyards; the bullish view accepted this as an achievable goal and valued HII on a higher "normalized" earnings. Bears concluded that the benefits of a turnaround were too distant and uncertain to incorporate, and they focused on the relatively poor near-term earnings, ascribing a lower value to HII. At that time, post-spin valuations by sell siders ranged from $18 to $56. We had a $33 post-spin value (the same as our current target), believing that the longer-term improvement, while compelling, was fraught with risk."
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