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JP Morgan Upgrades Huntington Ingalls Industries’ Outlook, Forecasts 24.72% Upside

EditorVenkatesh Jartarkar
Published 09/28/2023, 09:48 AM
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HII
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In a recent development this Thursday, JP Morgan has upgraded the outlook for Huntington Ingalls Industries (NYSE:HII) from Neutral to Overweight. This revision comes with a forecast of a 24.72% upside, setting a new target price of $253.41.

Earlier this week, HII announced a quarterly dividend of $1.24 per share. This represents a yield of 2.44%, which is notably higher than the firm's historical average yield of 2.12%. The current payout ratio for HII stands at 0.38, accompanied by a three-year dividend growth rate of 0.20%. It is noteworthy to mention that according to InvestingPro, HII has raised its dividend for 11 consecutive years and has maintained dividend payments for 12 consecutive years. These are clear indicators of the company's commitment to delivering value to its shareholders.

Huntington Ingalls Industries has projected an annual revenue of $11,038 million for the fiscal year. The company also anticipates a non-GAAP EPS (Earnings Per Share) of 15.28. However, InvestingPro data shows that the revenue growth has been slowing down recently, with a growth rate of 6.3% in the last twelve months (LTM2023.Q2). The company's gross profit margin stands at 13.21%, suggesting some room for improvement.

Among the major shareholders in HII are Capital World Investors and Invesco, demonstrating continued investor confidence in the defense contractor's financial performance and potential for growth. The company's market capitalization, as provided by InvestingPro, is $8200.0M USD, and it trades with a P/E ratio of 15.59, offering a relatively low price volatility, as per InvestingPro Tips.

InvestingPro's real-time metrics also indicate a 1 Year Price Total Return of -7.75%, and a fair value estimation of $251.6 USD, slightly below JP Morgan's new target price. The company's next earnings date is set for November 9, 2023.

For more insights and tips on HII and other companies, consider exploring InvestingPro's premium offerings which include additional tips and real-time metrics. InvestingPro Tips offers an array of valuable insights for informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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