General Dynamics price target lowered to $222 from $240 at Credit Suisse

Credit Suisse analyst Scott Deuschle lowered the firm’s price target on General Dynamics to $222 from $240 and keeps a Neutral rating on the shares following quarterly results. Overall, it was a solid Q4 result, but guidance was generally disappointing, Credit Suisse says. The firm sees some upside potential from the restart of Ajax payments, though these could fold-in over several years similar to the Saudi tracked vehicle payment schedule agreed to several years ago. Ultimately, the firm continues to like GD‘s strong free cash flow generation, relative bizjet positioning, and the wide moats at both Combat and Marine, but thinks the multiple may struggle until the broader bizjet cycle debate is resolved, and defense EBIT growth shows some reacceleration.