General Dynamics upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded General Dynamics (GD) to Overweight from Equal Weight with a price target of $408, up from $385, as part of its 2026 outlook for aerospace and defense. The firm sees aerospace and defense as attractive going into 2026, saying demand continues to outpace supply growth. The defense sector offers good value as the stocks are not reflecting the growth in U.S. defense budget, the analyst tells investors in a research note.