TD Cowen analyst Gautam Khanna has maintained their neutral stance on HII stock, giving a Hold rating today.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Gautam Khanna has given his Hold rating due to a combination of factors impacting Huntington Ingalls Industries (HII). Persistent challenges in shipbuilding have been a major concern, with no immediate solutions in sight, leading to significant negative profit adjustments. These ongoing issues, particularly with labor and supply chain bottlenecks, suggest that any improvement in margins is unlikely to occur until after 2028, thus affecting near-term earnings.
Additionally, while there are upcoming contracts for submarines that could potentially improve cash flow, the timing of these contracts has been delayed, impacting the company’s cash flow guidance for the coming years. Furthermore, cost-cutting measures are expected, but these savings are already factored into the guidance and do not present additional upside. Therefore, while there are positive aspects to consider, such as planned increases in shipbuilding throughput, the overall outlook remains cautious, leading to the Hold rating.
In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a $166.00 price target.
Based on the recent corporate insider activity of 145 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HII in relation to earlier this year.