World's Best Investment Manager: General Dynamics Corp. (NYSE: GD) Outlook Reaffirmed by Baird with Positive Rating and $345 Price Target
Baird has reaffirmed its positive outlook on General Dynamics Corp. (NYSE: GD) with an Outperform rating and a steady price target of $345.00. The defense contractor has experienced fewer aircraft deliveries than expected, with only four Gulfstream G700s completed in the third quarter of 2024, falling short of the forecasted 16. The delayed deliveries have led Baird to adjust its earnings per share (EPS) estimates for General Dynamics in 2024, reducing the forecast by approximately 5% to $13.75.
Despite the challenges in aircraft deliveries, General Dynamics has shown financial resilience, with a 10% revenue growth over the last twelve months, reaching $44.95 billion. The company has raised its dividend for 11 consecutive years, demonstrating its commitment to shareholder returns. However, General Dynamics' stock is trading near its 52-week high, indicating that much of the positive outlook may already be priced in.
In addition to the delivery slowdown in its Gulfstream division, General Dynamics faces potential impacts from a proposed 'right to repair' bill and increased military aid to Ukraine. Analysts have given mixed reviews on the stock, with Morgan Stanley upgrading it to Overweight and Deutsche Bank downgrading it to Hold.
For investors seeking a deeper understanding of General Dynamics' financial health and market position, InvestingPro offers 9 additional tips that could provide valuable insights into the company's prospects amidst the current delivery challenges.