General Dynamics Initiated At RBC Capital, With Notable Upside

RBC Capital analyst Ken Herbert initiated coverage on General Dynamics Corp GD with Outperform rating and a price target of $275, implying an upside of 19%.
The analyst states that GD is a leading supplier of business jets, government IT services, ships, and ground equipment for the aerospace and defense industry. It faces near-term risk associated with the broader economic outlook, he added.
Also Read: General Dynamics Lands $1.1B Foreign Military Sales Order
GD is investing to substantially increase its Gulfstream jet production, which should be a source of revenue and margin upside through 2024 as the company looks to further its competitive position.
Herbert believes the company faces substantial execution risk, but the rating reflects the ability to own a leading global brand at an attractive valuation.
Price Action: GD shares are trading lower by 0.89% at $231.61 on the last check Tuesday.

Analyst Calendar