UPDATE: Drexel Hamilton Upgrades Huntington Ingalls Industries to Buy on EPS Outlook

Drexel Hamilton raised its rating on Huntington Ingalls Industries

from Hold to Buy with a price target of $47 a share. Drexel Hamilton noted, "We are raising our rating on shares of HII from Hold to Buy as we believe earnings risk from low-margin “problem programs” is rapidly declining. As risk from these programs abates, the likelihood of margins increasing at the Ingalls unit thereby rises, which should drive double-digit earnings growth for the company overall for the next three years, we believe." Huntington Ingalls Industries closed at $40.23 on Wednesday.