General Dynamics: Strong Performance and Promising Outlook with Buy Rating

General Dynamics (GD – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Gautam Khanna from TD Cowen maintained a Buy rating on the stock and has a $290.00 price target.

Gautam Khanna has given his Buy rating due to a combination of factors that highlight General Dynamics’ strong performance and potential for future growth. The company’s Gulfstream, Marine, and Tech segments exceeded expectations in the first quarter, with notable achievements such as Tech’s impressive book-to-bill ratio and year-over-year sales growth, despite challenges in government IT procurement. Additionally, the Marine segment’s margins and Gulfstream’s delivery numbers indicate a positive trend in execution.
Furthermore, the anticipated certification of the Gulfstream G800 and its potential impact on deliveries suggest a promising outlook for the company. While there are concerns about the impact of tariffs on Gulfstream’s international sales, the earlier-than-expected G800 certification could lead to higher deliveries if demand remains stable. Although General Dynamics did not raise its guidance for 2025, the company’s ability to secure additional funding for shipbuilding projects remains a positive factor for future performance.

In another report released on April 17, Barclays also maintained a Buy rating on the stock with a $285.00 price target.

Based on the recent corporate insider activity of 109 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.