Stock Pulse
Huntington Ingalls Industries (HII) received a double upgrade from Goldman Sachs to a "buy" rating with a $234 price target, driven by anticipated increased Navy shipbuilding in the Pentagon budget [2]. This positive outlook contrasts with concerns over the company's mediocre backlog growth, shrinking free cash flow margin, and waning returns on capital [5]. HII announced its Q1 2025 earnings release for May 1st [4]. The company also strengthened its position in the AUKUS partnership by recognizing five Australian companies as potential suppliers for nuclear-powered submarine construction [6]. While HII faces challenges, its role as a primary U.S. Navy shipbuilder and involvement in key defense programs like the Columbia-class submarine and UUV development offer long-term growth potential [8], [9]. Indirectly, growing demand for naval combat systems further supports HII's market position [1], [10].