General Dynamics price target raised to $310 from $306 at UBS

UBS analyst Gavin Parsons raised the firm’s price target on General Dynamics to $310 from $306 and keeps a Neutral rating on the shares. Defense revenue continues to surprise positively, up 9% in the quarter with tailwinds likely to continue in both Combat and Marine, the analyst tells investors in a research note. The firm is watching Aerospace bookings and backlog closely, and while UBS believes demand can hold steady, the step-function in revenue can start to burn down backlog; if bookings remain flat from Q1, the revenue step-up would result in a nearly 20% backlog decline by year-end, which would come with cash headwinds relative to guidance, the firm says.