Huntington Ingalls Industries: Late To The Naval Defense Party, But I Am Upgrading

Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(8min)Comment(1)SummaryHuntington Ingalls Industries is upgraded to Buy with a $450.72 price target, reflecting a 23% upside against 2028 earnings expectations.HII’s Q4 2025 saw 15.7% revenue growth and 89.3% operating earnings surge, driven by improved throughput and derisked shipbuilding programs.2026 outlook is for modest 2.2% revenue growth and stable margins, but industry rerating and defense spending trends underpin the investment case.Margin expansion is expected as cost overhangs fade and post-pandemic contract awards drive a stronger revenue mix from 2027 onward.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » teppakorn tongboonto/iStock via Getty Images Huntington Ingalls Industries (HII) stock prices have increased almost 150% since my last report. I had a hold rating on HII and that means that while holding the stock definitely would notThis article was written byDhierin Bechai22.96K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.