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Investing.com - Wolfe Research upgraded General Dynamics Corp. (NYSE:GD) from Peerperform to Outperform on Thursday, setting a price target of $360.00. The aerospace and defense giant, currently trading near its 52-week high of $318.77, has demonstrated strong momentum with a 22.22% year-to-date return, according to InvestingPro data.
The upgrade reflects Wolfe Research’s confidence in General Dynamics following cleared hurdles in Gulfstream business jet bookings-to-billings results and forward commentary, positioning the company as a "solid play on topline growth and margin recovery" in its business jet unit.
The $360 price target represents approximately 14% upside potential and is based on about 21.5 times Wolfe Research’s 2026 free cash flow per share estimate of $16.66, which is 1% above both the firm’s previous estimate and consensus forecasts.
Wolfe Research noted that while margins remain constrained in General Dynamics’ Marine segment, sales performance and budgetary support remain strong, alongside an improving free cash flow generation profile after a year of negative revisions.
The research firm also highlighted opportunities for "meaningful share repurchases" as General Dynamics’ leverage ratio falls below 1X, with the defense business providing downside protection and growth potential.
In other recent news, General Dynamics Corporation reported strong financial results for the second quarter of 2025, surpassing analysts’ expectations. The company announced earnings per share of $3.74, which exceeded the forecast of $3.44. General Dynamics also reported revenue of $13 billion, surpassing the projected $12.18 billion. Additionally, General Dynamics Electric Boat Corp., a subsidiary of the company, was awarded a $33.5 million contract modification by the U.S. Department of Defense for submarine maintenance support. This cost-plus-fixed-fee modification extends a previously awarded contract for Nuclear Regional Maintenance Department support at Naval Submarine Support Facility New London. These recent developments highlight General Dynamics’ continued success in securing government contracts and exceeding financial projections.
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