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Investing.com - Citi has raised its price target on General Dynamics Corp. (NYSE:GD) to $368.00 from $348.00 while maintaining a Buy rating on the stock. The aerospace and defense giant, currently trading at $316.94, is approaching its 52-week high of $318.77. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model.
The price target increase follows General Dynamics’ second-quarter results, which exceeded consensus expectations, prompting the company to raise its guidance accordingly.
General Dynamics’ Aerospace division reported a book-to-bill ratio of 1.3x despite higher deliveries in the quarter, while the Marine segment experienced significant revenue growth driven primarily by the timing of receipts, though margins remain generally weak compared to historical performance due to lingering pandemic-related supply chain impacts.
Revenue growth in the Technologies and Combat divisions remained flat, which Citi attributes to challenges in the current contracting environment during the Administration transition, though the company maintains a robust pipeline.
Citi’s continued Buy rating reflects an improving demand environment across General Dynamics’ portfolio and potential for margin expansion over the medium term, driven by product mix, an improving supply chain, and increasing productivity as the labor force stabilizes and matures.
In other recent news, General Dynamics Corporation reported robust financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share of $3.74, beating the forecasted $3.44, and reported revenue of $13 billion, exceeding the projected $12.18 billion. Additionally, General Dynamics Electric Boat was awarded a $33.5 million contract modification by the U.S. Department of Defense for submarine maintenance support, extending a previously awarded contract. Wolfe Research upgraded General Dynamics from Peerperform to Outperform, setting a price target of $360. This upgrade is based on cleared hurdles in Gulfstream business jet bookings-to-billings results and forward commentary, positioning the company for topline growth and margin recovery in its business jet unit. These developments reflect recent positive momentum for General Dynamics.
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