General Dynamics price target lowered to $298 from $331 at Bernstein

Bernstein lowered the firm’s price target on General Dynamics (GD) to $298 from $331 and keeps a Market Perform rating on the shares. Bernstein was neutral on defense stocks during 2024 because the firm saw Congressional budget caps limiting the prospects of a rising revenue outlook even against the backdrop of high geopolitical threats, and although none of the stocks outperformed the S&P500 before the election, since Trump’s win the stocks have declined sharply, in part to concerns regarding ongoing talk of budget constraints by the right wing in the House, impact of Elon Musk’s DOGE cost reduction efforts, and a potentially more isolationist posture, the analyst tells investors in a research note. The firm sees the lower valuations making the defense group much more attractive, and expects the new administration support strong defense capabilities, for which there should be bipartisan support.