TD Cowen analyst Gautam Khanna maintained a Buy rating on Huntington Ingalls today and set a price target of $350.00.
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Gautam Khanna has given his Buy rating due to a combination of factors that suggest potential growth and improvement for Huntington Ingalls Industries. The company is positioned to benefit from an increase in shipbuilding demand, which is expected to drive a gradual operational turnaround. This is evidenced by the potential for ship margins to increase from 6% to 9% over the coming years, despite mixed operating trends in the recent quarter.
Additionally, investor sentiment, which has been subdued, is likely to improve as the company continues to meet its near-term milestones. Although there are challenges, such as the productivity goal adjustment and the high percentage of low-margin pre-COVID contracts, the company’s financial guidance and management’s confidence in future free cash flow provide a positive outlook. These factors, combined with the company’s strategic positioning and potential for operational improvements, underpin Khanna’s Buy rating.
In another report released on October 25, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $343.00 price target.
Based on the recent corporate insider activity of 141 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.