TD Cowen analyst Gautam Khanna has maintained their bullish stance on HII stock, giving a Buy rating yesterday.
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Gautam Khanna has given his Buy rating due to a combination of factors including Huntington Ingalls’ consistent performance and strategic positioning for future growth. Despite an unremarkable second quarter, the company is on track with its margin recovery plan, which aligns with Khanna’s upward re-rating thesis. The shipbuilding segment, although facing some challenges, is expected to achieve significant throughput goals by 2025, indicating potential for future profitability.
Additionally, Huntington Ingalls has raised its free cash flow guidance for 2025, which suggests improved financial health and operational efficiency. The potential for signing significant multiyear contracts for submarines also presents a promising outlook, although the timing remains uncertain. These factors, combined with management’s strategic initiatives and adjustments, underpin Khanna’s optimistic view of the company’s stock performance.
According to TipRanks, Khanna is a top 25 analyst with an average return of 18.1% and a 73.45% success rate. Khanna covers the Industrials sector, focusing on stocks such as Boeing, Booz Allen, and General Dynamics.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $288.00 price target.