Barclays Maintains an 'Equalweight' on Huntington Ingalls (HII); Solid Quarter, but Risk Items Remain
Tweet
Share
E-mailGet Alerts HII Hot Sheet
Price: $318.34 -2.86%
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
10 Buy, 12 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Join SI Premium – FREE
Barclays maintains an 'Equalweight' on Huntington Ingalls (NYSE: HII) price target of $33.00.
Barclays analyst says, "Overall, excluding the one-time goodwill charge, HII Q3 earnings were better than we expected largely due to better margins at Newport. However, we suspect this better performance was due to timing of positive performance incentives, and are likely unsustainable (we speculate these incentives added ~$0.12 in the quarter). Otherwise, while the company re-affirmed its longer-term revenue and margin forecast, we think these targets are subject to revision pending budgetary outcomes. We note progress on the zero margin "problem" LPD and LHA ships but until these ships are delivered, we think investors will remain anxious. Therefore, despite HII's impressive one-month performance (+23% vs S&P 500 +4%), we think we need more visibility on these risks items in order for HII shares to appreciate above our $33 price target."
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 $31.00 yesterday.
Barclays analyst says, "Overall, excluding the one-time goodwill charge, HII Q3 earnings were better than we expected largely due to better margins at Newport. However, we suspect this better performance was due to timing of positive performance incentives, and are likely unsustainable (we speculate these incentives added ~$0.12 in the quarter). Otherwise, while the company re-affirmed its longer-term revenue and margin forecast, we think these targets are subject to revision pending budgetary outcomes. We note progress on the zero margin "problem" LPD and LHA ships but until these ships are delivered, we think investors will remain anxious. Therefore, despite HII's impressive one-month performance (+23% vs S&P 500 +4%), we think we need more visibility on these risks items in order for HII shares to appreciate above our $33 price target."
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 $31.00 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Barclays Upgrades Schott Pharma AG (1SXP:GR) to Overweight
- Fabrinet (FN) Tops Q4 EPS by 29c, Beats on Revenue; Offers Guidance
- Duos Technologies Group, Inc. (DUOT) Tops Q2 EPS by 163c
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Barclays, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
