Analyst Gautam Khanna of TD Cowen maintained a Buy rating on General Dynamics, boosting the price target to $340.00.
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Gautam Khanna’s rating is based on several positive developments within General Dynamics’ various segments. The Marine segment showed significant improvement with a notable increase in sales and a stable margin, despite minor setbacks. Additionally, the company reported progress in supply chain stabilization and labor availability, which are crucial for future growth. The backlog in the Marine segment also saw a substantial rise, indicating strong future demand.
In the Aerospace segment, Gulfstream’s key performance indicators were robust, with a strong book-to-bill ratio and increased sales guidance. Despite external challenges such as tariffs, customer demand remained high, and the company raised its delivery guidance for Gulfstream jets. Furthermore, the Combat and Information Technology segments showed resilience, with European demand helping offset domestic challenges. Overall, General Dynamics’ raised sales and earnings guidance for the coming years reflects a positive outlook, justifying the Buy rating.
Khanna covers the Industrials sector, focusing on stocks such as Boeing, General Dynamics, and Booz Allen. According to TipRanks, Khanna has an average return of 17.8% and a 73.60% success rate on recommended stocks.
In another report released on July 15, Barclays also maintained a Buy rating on the stock with a $285.00 price target.