General Dynamics price target raised to $302 from $290 at Bernstein

Bernstein raised the firm’s price target on General Dynamics to $302 from $290 and keeps a Market Perform rating on the shares. The firm expects free cash flow to grow at roughly a 7% CAGR from 2023-2028, as it benefits from reduced CapEx. In terms of valuation, Bernstein sees GD‘s valuation lying roughly in the middle of the large U.S. defense primes. It could become more attractive, however, if margins can move up more rapidly at Gulfstream and/or throughput on Navy shipbuilding can approach the Navy’s goal of 2 Virginia Class submarines per year, it adds.