Citigroup maintains Buy rating on General Dynamics, raises PT to $348.

Citigroup maintains Buy rating on General Dynamics, raises PT to $348.

Title: Citigroup Maintains Buy Rating on General Dynamics, Raises Price Target to $348

Citigroup has maintained its Buy rating on General Dynamics (GD) and increased its price target to $348, reflecting ongoing positive trends in the aerospace and defense sectors. The firm cited the company's continued momentum in these industries as the reason for the upward revision [1].

According to Citigroup, the average price target from 16 analysts is $301.42, with a high estimate of $342.00 and a low estimate of $239.00. This average target implies a downside of 0.26% from the current price of $302.20 [1].

The consensus recommendation from 24 brokerage firms is a 2.5 rating, indicating an "Outperform" status. GuruFocus estimates the GF Value for General Dynamics to be $314.26, suggesting an upside of 3.99% from the current price of $302.20 [1].

General Dynamics reported a strong first quarter, with earnings per diluted share of $3.66, a 27.1% increase from the previous year. Revenue increased by 13.9% to $12.2 billion, with operating earnings up 22.4% and net earnings up 24.4%. The Aerospace segment led with a 45.2% revenue increase, driven by a 50% increase in aircraft deliveries, including the introduction of the G700 [1].

However, free cash flow for the quarter was negative $290 million, impacted by inventory buildup and working capital requirements. The total backlog decreased slightly to $89 billion due to a book-to-bill ratio of less than one, influenced by a 14% revenue increase [1].

Analysts at Deutsche Bank Aktiengesellschaft also upgraded General Dynamics from a "hold" rating to a "buy" rating, setting a $342.00 price target. This suggests a potential upside of 15.97% from the stock's previous close [2].

Other notable analyst changes include:
- Citigroup reducing their target price from $335.00 to $330.00 and setting a "buy" rating.
- Argus setting a $295.00 price target.
- Wells Fargo & Company cutting their price target from $261.00 to $236.00 and setting an "equal weight" rating.
- UBS Group increasing their price target from $268.00 to $279.00 and giving a "neutral" rating.
- Morgan Stanley cutting their price target from $305.00 to $300.00 and setting an "equal weight" rating [2].

General Dynamics' stock has seen institutional ownership of 86.14%, with recent insider selling and hedge fund buying activity. The company operates in the aerospace and defense sectors, with four main segments: Aerospace, Marine Systems, Combat Systems, and Technologies [2].

References
[1] https://www.gurufocus.com/news/2974097/citi-boosts-price-target-for-general-dynamics-gd-gd-stock-news
[2] https://www.marketbeat.com/instant-alerts/general-dynamics-nysegd-raised-to-buy-at-deutsche-bank-aktiengesellschaft-2025-07-08/