UPDATE: Bank of America Raises PO to $40 on Huntington Ingalls Industries Following Improved Execution

Bank of America maintained Huntington Ingalls Industries

with an Underperform rating and raised the price objective from $30.00 to $40.00. Bank of America noted, "We are raising our 2013 EPS estimate to $3.80 from $3.75. We are increasing our Ingalls segment operating margin to 5.5% from 4.5% as HII executed better than we expected. … Considering the company's execution history, we remain comfortable below management's long-term guidance of greater than 9% operating margins by 2015. We are increasing outyear EPS estimates as we account for 2% interest income earned on cash accumulated in the balance sheet." Huntington Ingalls Industries closed at $47.76 on Thursday.