Defense Secretary Visits Major Defense Manufacturers in Rhode Island and Maine

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 7h ago

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GD+2.28%

Should l Buy GD?

Source: seekingalpha

Defense Industrial Tour: Secretary of Defense Pete Hegseth is set to visit major defense manufacturers in Rhode Island and Maine on Monday as part of the nationwide “Arsenal of Freedom” tour, aimed at enhancing attention to the U.S. defense industrial base, emphasizing manufacturing capacity and supply chain readiness.
Key Facility Visits: Hegseth will tour facilities operated by General Dynamics, Anduril, and Bath Iron Works, and is scheduled to administer the oath of enlistment to new recruits at the Seabees Museum, focusing on discussions with industry leaders and workers about production challenges and workforce needs.
Advocating Procurement Reform: The visit aims to push for changes in defense procurement, including faster contracting timelines, greater reliance on commercial technologies, and longer-term agreements designed to provide companies with more certainty to invest and expand production, reflecting a commitment to military readiness.
Manufacturing Capacity Weaknesses Exposed: Defense officials have indicated that recent global conflicts and rising demand for military equipment have revealed weaknesses in U.S. manufacturing capacity, particularly in shipbuilding, munitions, and advanced technologies, with the tour highlighting these constraints and signaling policy priorities for future acquisition and industrial planning.

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Analyst Views on GD

Wall Street analysts forecast GD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GD is 386.85 USD with a low forecast of 360.00 USD and a high forecast of 410.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

15 Analyst Rating

7 Buy

8 Hold

0 Sell

Moderate Buy

Current: 352.050

Low

360.00

Averages

386.85

High

410.00

Current: 352.050

Low

360.00

Averages

386.85

High

410.00

Jefferies

Sheila Kahyaoglu

Hold

maintain

$360 -> $385

2026-02-01

Reason

Jefferies

Sheila Kahyaoglu

Price Target

$360 -> $385

AI Analysis

2026-02-01

maintain

Hold

Reason

Jefferies analyst Sheila Kahyaoglu raised the firm's price target on General Dynamics to $385 from $360 and keeps a Hold rating on the shares. The firm views the company's 2026 outlook as conservative but reduced estimates post the earnings report.

UBS

Neutral

maintain

$388 -> $393

2026-01-29

Reason

UBS

Price Target

$388 -> $393

2026-01-29

maintain

Neutral

Reason

UBS raised the firm's price target on General Dynamics to $393 from $388 and keeps a Neutral rating on the shares. Demand is strengthening across most segments, with Gulfstream, Combat Systems, and Marine driving a solid outlook and supporting free cash flow growth even amid sharply higher capex, the analyst tells investors in a research note. Despite a multi-year earnings runway, margin trends and conservative guidance keep estimates largely unchanged and suggest consensus expectations may need to moderate, UBS says.

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About GD

General Dynamics Corporation is a global aerospace and defense company. It offers a portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions, and technology products and services. Its segments include Aerospace, Marine Systems, Combat Systems and Technologies. The Aerospace segment produces business jets and is the standard bearer in new technology aircraft, aircraft repair, customer support and custom completion services. The Marine Systems segment designs and builds nuclear-powered submarines and is engaged in surface combatant and auxiliary ship design and construction for the U.S. Navy. The Combat Systems segment manufactures land combat solutions worldwide, including wheeled and tracked combat vehicles, weapons systems and munitions. The Technologies segment provides a full spectrum of services, technologies and products to a range of military, intelligence, federal civilian and state customers.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

General Dynamics Reports Q4 Earnings Beat but Stock Declines

2 days agoFool

Earnings Beat: General Dynamics reported Q4 2025 earnings of $4.17 per share, exceeding Wall Street's expectation of $4.11, with sales reaching $14.4 billion, $600 million above forecasts; however, the stock fell nearly 3% on earnings day.
Margin Weakness: Despite an 8% increase in sales, operating earnings rose only 2%, net earnings declined by 0.4%, and earnings per share increased by just 0.5%, indicating weakening profit margins, particularly in the aerospace and technologies divisions.
Marine Systems Surge: The marine systems division saw a 22% revenue increase and over 72% growth in operating profit, with a 210 basis point improvement in operating margin, yet it remains the least profitable division with a margin of only 7.2%.
Cautious 2026 Outlook: General Dynamics expects to earn about $16.15 per share on sales of approximately $54.5 billion in 2026, projecting mid-single-digit growth; however, the stock appears expensive, prompting analysts to recommend a sell despite the earnings beat.