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General Dynamics remains a TD Cowen favorite

Published 06/30/2023, 12:17 PM
© Reuters.  General Dynamics (GD) remains a TD Cowen favorite
GD
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TD Cowen analysts reiterated an Outperform rating and $285 price target on General Dynamics (NYSE:GD) in a note Friday, stating that it remains the firm's favorite defense big cap.

The analysts stated that Gulfstream and improving combat are still the drivers for the stock.

"GD's Combat story continues to improve, and Gulfstream ramp is likely in H2 & 2024 although sector-wide bizjet supply chain issues are a Q2 headwind," the analysts wrote.

"Gulfstream's demand/pricing looks mostly stable with 'active' Fortune 500 interest while high net worth has slowed. We look for Q2 book-bill near Q1's 0.9x; but with backlog of $19.3B, up 65% vs. Y/E 2020 low, demand isn't the gating factor for 2023-24 deliveries," they added.

GD shares are up around 0.3% at the time of writing, just below the $215 per share mark. However, in 2023, the stock has declined over 13%.

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