General Dynamics (GD) Higher After UBS Upgrades Shares to 'Buy'

Shares of General Dynamics Corp. (NYSE: GD) are 1.5% higher after getting a key upgrade at UBS today.

UBS upgraded their rating on the defense giant from Neutral to Buy, citing an improved defense risk profile, a survey showing a stable bizjet market with particular strength in large cabin demand & pricing, and an attractive valuation.

Commenting on concerns about defense budget pressure and program cuts the firm said, "It now appears VA Class is secure at 2/year, Stryker will be well funded to add 1-2 additional Stryker Brigade Combat Teams (SBCT) and EFV will only be cut modestly, not cancelled. In addition, GD has now secured international orders to solidify the outlook for Combat Systems."

The firm raised their price target on GD from $70 to $80.

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