The firm trimmed its price target on GD shares but sees near-term upside in aerospace and defense stocks after recent declines.
Citigroup lowered its price target for General Dynamics (NYSE:GD) to $364 from $380 while maintaining a Neutral rating. The adjustment follows sector-wide model updates, with the firm citing no immediate rebound unless Middle East tensions ease. Recent selloffs were described as potential entry points, particularly for aerospace stocks expected to recover ahead of defense names.
General Dynamics reported Q1 2026 earnings of $4.10 per share on $13.5 billion in revenue. The company secured $26 billion in orders, doubling its book-to-bill ratio to 2:1 and expanding its backlog to $131 billion. Aerospace deliveries matched expectations, with 38 aircraft generating stronger margins than prior models. Marine Systems revenue rose 21%, driven by submarine programs.