General Dynamics Corp. (GD) New Top Pick at Vertical Research Partners on Gulfstream Strength

Vertical Research Partners analyst Robert Stallard reiterated a Buy rating and $276.00 price target on General Dynamics Corp. (NYSE: GD) promoting the company to his top pick due to the combination of 75% of operating profits coming from the defense industry with potential upside coming from Gulfstream which is seeing strong backlog that extends across the industry propping up pricing.

The analyst stated "What has arguably dragged down Gulfstream in the past has been a lack of supply and price discipline by the rest of the bizjet industry, but in this current period of demand strength we are seeing all the OEMs acting like Gulfstream. The bizjet backlogs are much more robust, with ~18 month lead times, while strong demand and restrained supply is helping pricing and margins. The industry is in a much better position to withstand an economic recession in the US should it occur in 2023."

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 $216.01 yesterday.

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