05:30 AM EDT, 03/20/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $48 to $237, driven by our assumed P/E multiple of 14.8x applied to our 2026 EPS estimate, in line with HII's three-year avg. forward P/E and a discount to peers' average forward P/E of 16.6x. We temper our EPS expectations, given our expectations of some continued volume headwinds at Newport News Shipbuilding: we trim 2025 by $1.08 to $14.66 and 2026 by $1.72 to $15.98. We note that our three-stage DCF model supports our Buy rating, with an intrinsic value of $254 per share, implying 22% upside. Our model inputs include a WACC of 6.1%, stage-two FCF growth of 3.5%, and stage-three FCF growth of 2.5%. We think HII will be a major beneficiary of increased U.S. naval ambitions, as the government is poised to increase funding for destroyers, specifically the Arleigh Burke-class destroyer. We think HII's valuation will be well supported by the Navy's plan to expand the fleet to 390 ships by 2054 (from current fleet of 295) at a cost of around $40 billion annually.