08:25 AM EDT, 05/07/2025 (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 $30 to $267, or 16.0x our 2026 EPS estimate, a premium to HII's three-year avg. forward P/E of 14.8x but below peers, which are trading at an average forward P/E of 17.7x. We trim our 2025 EPS forecast by $0.21 to $14.45 but raise 2026 by $0.72 to $16.70. HII posts Q1 adj. EPS of 3.79 vs. $3.87, $0.98 above consensus, despite a 2% top-line miss. Q1 total revenue decreased by 2.5% Y/Y to $2.73B, primarily due to lower volumes across all three operating segments. Despite the top-line pressure, HII managed to improve its overall operating margin to 5.9%, up 40 bps from the same period last year. The shipbuilding segments, which include Newport News Shipbuilding and Ingalls Shipbuilding, faced headwinds with revenue declines of 2.6% and 2.7%, respectively. HII's backlog remained robust at $48B, supported by $2.1B in new contract awards during the quarter. We expect throughput to ramp up as the year progresses, which gives us confidence that HII can hit its guidance.