TD Cowen analyst Gautam Khanna maintained a Buy rating on General Dynamics yesterday and set a price target of $340.00.
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Gautam Khanna’s rating is based on the positive outlook for General Dynamics, particularly driven by the performance of the Gulfstream G700 aircraft. The production and delivery of the G700 have exceeded expectations, with an accelerated production rate and reduced completion times, suggesting potential upside to earnings estimates.
The G700’s delivery timeline has improved significantly, with the time from first flight to delivery compressing to approximately 70 workdays. This efficiency, coupled with a higher number of G700s beginning post-production flights, indicates a strong production capability that could lead to increased sales and earnings per share. Additionally, while the G800 production remains steady, the potential for increased deliveries aligns with the company’s guidance, further supporting the Buy rating.