01:25 PM EDT, 05/03/2024 (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:

Our 12-month target price of $258, cut $25, reflects a 14x multiple of projected '25 EPS, in line with HII's historical forward average. We cut our '24 EPS estimate by $1.36 to $16.51 and '25's by $0.78 to $18.42. Q1 operating EPS of $3.87 vs. $3.23, beat the consensus view by $0.39. HII achieved record Q1 revenues of $2.8B, up 4.9% Y/Y, and operated margins widened 20 bps to 5.5%. Revenue growth was led by Mission Technologies (+20%), and backlog at the end of March stood at $48.4B, up 3% Y/Y. However, HII's largest segment, Newport News Shipbuilding, experienced volume reduction and a 5% revenue drop. HII has guided to a turnaround in Newport volumes later this year, but we think that presumes a full recovery from manufacturing issues, and with some of the issues attributable to "first-in-class" projects for the Navy, we are somewhat wary on the timeline. Shares also yield 2.1%.