William Blair analyst Louie DiPalma has maintained their neutral stance on GD stock, giving a Hold rating on July 16.
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Louie DiPalma has given his Hold rating due to a combination of factors influencing General Dynamics’ current market position. The company’s recent performance, highlighted by a 6% increase in share value and a rise in full-year guidance, reflects strong results in the marine segment and promising developments in aerospace. However, despite these positive indicators, there are concerns about the early G800 aircraft deliveries being margin-dilutive, with expectations for aerospace margins to stabilize only by 2026 or 2027.
Additionally, while the company reported a 22% increase in marine revenue and a significant improvement in operating profit and EPS above consensus, the overall growth rate has decelerated from the previous quarter. The slower pace of contract awards in the first half of the year also adds to the uncertainty. Consequently, DiPalma believes that the shares are likely to remain range-bound in the near term until there is more clarity on these issues, justifying the Hold rating.
In another report released on July 16, RBC Capital also maintained a Hold rating on the stock with a $315.00 price target.
Based on the recent corporate insider activity of 101 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GD in relation to earlier this year.