HII price target lowered to $194 from $226 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on HII (HII) to $194 from $226 and keeps a Sell rating on the shares. The company’s Q3 results were well below expectations as assumptions for forward profit margins were reduced, and its business is seeing challenges from higher costs, labor disruption, and customer contracting volatility, the analyst tells investors in a research note. Navy shipbuilding is a difficult business because unit volumes are low while cost intensity is high, the firm added.