General Dynamics Corp. (GD) PT Raised to $405 at Compass Point

Compass Point analyst Robert Stallard raised the price target on General Dynamics Corp. (NYSE: GD) to $405.00 (from $400.00) while maintaining a Buy rating.

The analyst commented, "General Dynamics reported its 1Q26 results, with EPS of $4.10 coming in ahead of the consensus estimate of $3.67. Sales of $13.5bn were up 10% YoY, and comfortably ahead of our estimate for the quarter. The strongest growth was seen in Marine, which surged 21%. The operating margin of 10.5% was also better than our forecast, with notable strength in Aerospace, which came in at 15.0%. Non operating items were a modest headwind, making for a clean operating ‘beat’. The company ended the quarter with a backlog of $131bn, up 48% YoY. This made for a book to bill of 2x, and this was split 2.2x in defense, and 1.2x in Aerospace. Orders in Aerospace could have been higher but for some last minute delays linked to the War in the Middle East. FCF of $2.0bn was well ahead of our estimate of $0.4bn, with management noting a very good performance on working capital, while capex started the year at a seasonal low."

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