UPDATE: JP Morgan Initiates Huntington Ingalls Industries at Neutral with $46 PT

JP Morgan initiated its coverage on Huntington Ingalls Industries (NYSE:

) with a Neutral rating and a price target of $46 as it would like to see more risk retired as management works on a long-term turnaround. JP Morgan commented, "HII has a solid position as one of two primary shipbuilders for the US Navy, yet underperforming ships have weighed on performance in recent years. Management has laid out a long-term vision for the company to overcome these struggles that would make today's valuation attractive if achieved. However, we would like to see more risk retired before we get more constructive on the stock." Huntington Ingalls Industries closed at $40.34 on Monday.