HII price target raised to $260 from $180 at BofA

BofA raised the firm’s price target on HII (HII) to $260 from $180 and keeps an Underperform rating on the shares. As one of only two major nuclear submarine shipbuilders in the U.S., HII is “too big to fail,” which could provide a floor to valuation and remove near-term survivability risk, the analyst tells investors. While BofA is increasing estimates on stronger volumes and “investors’ appetite for exposure to insatiable demand for Navy ships,” the firm reminds investors that shipbuilding volumes may not be accompanied by incremental profits.