Morgan Stanley Downgrades General Dynamics Corp. (GD) to Equalweight

Morgan Stanley analyst Kristine Liwag downgraded General Dynamics Corp. (NYSE: GD) from Overweight to Equalweight with a price target of $305.00 (from $315.00).

The analyst comments: "We downgrade GD to EW from OW as we see the company relatively more exposed to tariff headwinds vs. Prime peers given its Gulfstream business and higher DOGE risks from its Technologies business. While business jet disruption risk is on balance lower than for commercial aerospace OE as the manufacturing footprint is more US-centric for business jet manufacturers like GD, tariff-induced supply chain disruption could pressure production output and pressure margins. GD's DOGE-related risk is elevated vs. pureplay Primes given its Technologies business constitutes ~27% of company revenue / ~24% of EBIT (2025 MSe). We note that GD's IT business was included in the GSA top 10 consulting firms targeted for cuts. The administration's emphasis to shore up the US shipbuilding industry bodes well for GD's Marine business, though improvements will take time to materialize, in our view."

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 $277.14 yesterday.

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