Analyst Ronald Epstein from Bank of America Securities reiterated a Buy rating on General Dynamics (GD – Research Report) and decreased the price target to $310.00 from $350.00.
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Ronald Epstein gave his rating based on several factors, highlighting the resilience of General Dynamics’ defense segments despite challenges faced by the aeronautics division. The defense demand is robust, with significant sales expected from the Combat and Marine segments, driven by rearmament priorities and naval support for submarine classes. These factors contribute positively to the company’s outlook.
Although the aeronautics segment struggled with process deviations and supply chain issues, Epstein considers these challenges temporary, with improvements anticipated by 2025. The strong global demand for munitions and vehicles, particularly through foreign military sales, reinforces the company’s growth potential. Despite elevated working capital levels expected in the first half of 2025, the overall financial health and strategic positioning of General Dynamics support the Buy rating.
In another report released on February 7, Citi also maintained a Buy rating on the stock with a $335.00 price target.