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Fly News Breaks for September 12, 2018
HII
Sep 12, 2018 | 08:48 EDT
Buckingham analyst Richard Safran initiated Huntington Ingalls with a Buy rating and a price target of $297, saying that it stands to benefit from growth in defense spending that is even higher than expected. The analyst notes that the company is a Defense pure-play and the largest shipbuilder in the country, adding that the naval shipbuilding sector is seen "directly benefiting" from the military budget amid "escalating threats". The analyst further states that valuation on Huntington Ingalls is attractive, with the stock trading at 15-times expected FY19 free cash flow - an "unwarranted 2-times discount" to its defense peers.