William Blair analyst Louie DiPalma has maintained their neutral stance on GD stock, giving a Hold rating on October 15.
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Louie DiPalma has given his Hold rating due to a combination of factors that reflect both positive performance and existing uncertainties. General Dynamics reported third-quarter results that exceeded expectations, driven by strong performance in its aerospace and marine segments. The company also raised its full-year revenue guidance, primarily due to the strength in these areas. However, despite these positive developments, there are concerns regarding the potential impact of a prolonged government shutdown on contract timing, which introduces uncertainty into future performance.
Additionally, while the aerospace segment showed impressive growth, early deliveries of the G800 aircraft are expected to be margin dilutive, with margins anticipated to recover only by 2026 or 2027. The company’s technologies revenue also saw a decline, indicating challenges in that segment. Given these mixed signals, DiPalma believes that the stock will likely remain within a certain price range over the next year until there is more clarity on the federal government’s situation and its impact on the company’s operations.
In another report released on October 15, Morgan Stanley also maintained a Hold rating on the stock with a $360.00 price target.