Drexel Hamilton Reiterates Buy Rating, $47 PT on Huntington Ingalls Industries

In a report published Monday, Drexel Hamilton reiterated its Buy rating and $47.00 price target on Huntington Ingalls Industries (NYSE: HII).

Drexel Hamilton noted, “We are keeping our eye on the potential effects of Tropical Storm Isaac, as it moves west-northwestward through the Gulf of Mexico in a line that could see it impacting HII's two gulf shipyards, at Avondale, LA, and Pascagoula, MS...We would be cautious ahead of Isaac, but should HII shares weaken ahead of the storm's impact and the hurricane proves more bark than bite, it could represent a unique buying opportunity. We continue to see HII shares as attractive given the earnings growth opportunity from a recovery in margins. We are currently projecting earnings of $3.41 in 2012, moving to $4.62 in 2014, with margin rate ramping from 5.8% to 7.3%.”

Huntington Ingalls Industries closed on Friday at $40.06.