Goldman Sachs Starts Huntington Ingalls (HII) at Sell

Goldman Sachs initiates coverage on Huntington Ingalls (NYSE: HII) with a Sell rating and $21 price target.

The firm said being a pure play on US platform driven Defense they expect this business to shrink as the DoD budget and Navy plan are revised downward. The firm also notes that HII has the lowest ROIC, profit margins and FCF/NI, and the most levered balance sheet, in their Defense coverage. Also, the bull case calls for margin improvement from a capital intensive business in a shrinking top-line, tougher contracting environment.

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 $26.96 yesterday.

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