Jefferies Raises Price Target on General Dynamics (GD) Following 3Q

Jefferies reiterated a Buy rating on General Dynamics Corp. (NYSE: GD), and raised the price target to $175.00 (from $167.00), following the company's 3Q earnings report. Jefferies reported revenues of $7.7BB, down 3.3% y-o-y, but nearly matched estimates. Aerospace sales declined 13.9% to $2.0BB due to lower deliveries of Green and Outfitted large-cabin aircraft. EPS was reported at $2.48 vs. estimates of $2.37.

Analyst Howard Rubel commented, "GD reported Q3 EPS from cont. ops of $2.48 vs. our est of $2.37 and $2.28 a year ago. The $0.20 year-over-year improvement was due to a 17% increase in IS&T profits, a small advance at Aerospace, a slightly lower tax rate, and a 3.7% reduction is outstanding shares. We boost our 2016 and 2017 EPS estimates to $9.75 and $10.35 from $9.70 from $10.25. We continue to rate GD shares a Buy."

For an analyst ratings summary and ratings history on General Dynamics Corp. click here. For more ratings news on General Dynamics Corp. click here.

Shares of General Dynamics Corp. closed at $151.14 yesterday.

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