Positive Outlook for General Dynamics as Analysts Predict Strong FY 2024

Citigroup's Jason Gursky raised their price target on General Dynamics (NYSE: GD) by 6.7% from $300 to $320 on 2024/04/26. The analyst maintained their Strong Buy rating on the stock.

Gursky's updated price target reflects their positive outlook on General Dynamics, an aerospace and defense company. In their analysis, Gursky highlighted the fundamental acceleration across all four of General Dynamics' businesses, which they believe will continue throughout the fiscal year 2024.

General Dynamics recently released its Q1 2024 earnings report, which showed mixed results. While the company's earnings per share (EPS) of $2.88 missed the Zacks Consensus Estimate of $2.89, it still outperformed the Q1 2023 EPS of $2.64 by 9.1%. On the other hand, the company's revenue of $10.73 billion surpassed the Zacks Consensus Estimate of $10.20 billion and showed an 8.6% increase compared to Q1 2023's $9.88 billion.

Despite the mixed earnings report, General Dynamics' Chairman and CEO, Phebe N. Novakovic, expressed confidence in the company's performance. Novakovic highlighted the solid operating results, revenue growth, backlog expansion, and margin expansion in the quarter. Additionally, Novakovic mentioned that the recent FAA certification of the Gulfstream G700 would enable the company to begin customer deliveries, further strengthening their position in the aerospace segment.

Other analysts also weighed in on General Dynamics following the earnings release. Seth Seifman from JP Morgan raised their price target by 6.4% from $280 to $298 and maintained their Strong Buy rating on the stock. On the other hand, Michael Eisen from RBC Capital lowered their price target by -1.5% from $325 to $320 but also maintained their Buy rating on the stock.

Overall, General Dynamics received positive ratings from analysts, with 100% of top-rated analysts currently rating the stock as either a Strong Buy or Buy. No analysts see it as a Hold, and none recommend selling the stock.

Looking ahead, the consensus forecast among analysts is that General Dynamics' upcoming fiscal year will deliver earnings per share (EPS) of $15.54. If the analysts' predictions hold true, this would represent a 25.3% increase on a year-over-year basis.

Since the release of General Dynamics' Q1 2024 earnings report on April 24, the stock price has seen a 1.3% increase. Year-over-year, the stock has shown significant growth, with a 27.9% increase, outpacing the overall performance of the S&P 500, which has risen by 24%.

It's worth noting that Jason Gursky, the Citigroup analyst who raised the price target on General Dynamics, is ranked in the top 22% of Wall Street analysts by WallStreetZen. With an average return of 5.6% and a win rate of 58.5%, Gursky specializes in the Industrials and Technology sectors.

General Dynamics Corporation, founded in 1899 and headquartered in Reston, VA, is a prominent player in the aerospace and defense industry. The company offers a range of products, including Gulfstream business jets, nuclear-powered submarines, guided-missile destroyers, tanks, and armored fighting vehicles. As of 2019, General Dynamics was the fifth-largest defense contractor in the U.S. and the sixth-largest in the world based on sales.

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