General Dynamics initiated with a Neutral at UBS

UBS analyst Gavin Parsons initiated coverage of General Dynamics with a Neutral rating and $265 price target. The global prioritization of national security has structurally changed and will lead to continued growth in defense spending, but the business jet production is seen peaking in 2025 and declining thereafter, the analyst tells investors in a research note. UBS adds that General Dynamics’ long-term growth programs like Columbia class submarine contribute visibility to a higher top-line, but its Combat and Technologies are lumpier, while its Gulfstream business is 25% of revenue.