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Investing.com - Bernstein SocGen Group raised its price target on General Dynamics Corp. (NYSE:GD) to $335.00 from $314.00 on Thursday, while maintaining a Market Perform rating on the stock. The defense contractor’s shares are currently trading near their 52-week high of $318.77, having delivered an impressive 20% return over the past six months.
The price target increase follows General Dynamics’ second-quarter earnings report released Wednesday, July 23, which showed diluted earnings per share of $3.74, exceeding the consensus estimate of $3.55. The company reported revenues of $13 billion, above the consensus expectation of $12.39 billion. This performance contributes to the company’s strong trailing twelve-month revenue of $50.27 billion, representing nearly 12% year-over-year growth.
According to Bernstein, the earnings beat was driven by strong revenue performance in the Marine Systems segment and improved margins in the Aerospace division. General Dynamics has raised its revenue guidance for both these segments.
Bernstein has increased its earnings per share estimates for General Dynamics to $15.26 for 2025, up from $14.87 previously, and to $17.29 for 2026, up from $16.94, citing a better outlook for Aerospace margins.
The firm’s new price target reflects stronger outlooks for both the Marine and Aerospace segments, resulting in an increased EV/EBITDA multiple of 14.2X for the defense contractor.
In other recent news, General Dynamics Corporation reported impressive financial results for the second quarter of 2025. The company exceeded analysts’ expectations with an earnings per share of $3.74, surpassing the forecast of $3.44, and reported revenue of $13 billion, which was above the projected $12.18 billion. These strong earnings results prompted Citi to raise its price target for General Dynamics to $368, maintaining a Buy rating on the stock. Wolfe Research also upgraded the company’s stock to Outperform, setting a price target of $360, due to positive developments in the Gulfstream business jet unit. Additionally, General Dynamics Electric Boat was awarded a $33.5 million contract modification by the U.S. Department of Defense for submarine maintenance support. This contract is a continuation of a previously awarded project for the Naval Submarine Support Facility New London. These recent developments reflect a period of robust performance and strategic growth for General Dynamics.
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