Barclays analyst David Strauss started Huntington Ingalls (HII) with an Overweight rating and $309 price target. The analyst believes expectations for U.S. Aerospace & Defense are too low and initiated the sector with a Positive rating. Fundamentals look poised to deliver accelerating growth against consensus, the analyst contends. He favors TransDigm Group (TDG) in Aerospace and his top pick overall is L3 Technologies (LLL).

HII was awarded a $120.3M modification to a previously awarded contract to establish a quality-of-service improvements incentive. This special incentive will support the improved Quality of Life for Navy sailors stationed at Newport News Shipbuilding. Work is expected to be completed by April 2026. FY24 shipbuilding and conversion funds in the amount of $40M will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S. Code 3204. Naval Sea Systems Command is the contracting activity.