RBC Capital analyst Matthew McConnell raised his price target on General Dynamics (GD) to $267, saying the company's acquisition of CSRA (CSRA) is a "savvy deal in a core and high ROIC platform of a best-in-class asset at a reasonable price". The analyst keeps his Outperform rating on General Dynamics, noting that CSRA is on the cusp of organic revenue growth acceleration after posting a book-to-bill of at least 1.3-times over the past ten quarters.

RBC Capital lowered the firm's price target on General Dynamics to $320 from $325 after its Q1 earnings miss but keeps an Outperform rating on the shares. The company's revenue growth was driven by double-digit growth in Combat Systems, Marine Systems, and Aerospace, but while the management provided cautious comments on Q2 earnings and free cash flow, the set-up into the second half remains "very favorable", the analyst tells investors in a research note. RBC adds that it continues to see capital allocation as a key catalyst for General Dynamics.

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Reports Q1 revenue $10.7B, consensus $10.32B. "Our businesses delivered solid operating results in the quarter, growing revenue and backlog, while expanding margins, even as we awaited G700 certification," said Phebe N. Novakovic, chairman and chief executive officer. "In the Aerospace segment, the recent FAA certification of the Gulfstream G700 has enabled us to begin customer deliveries. This is a strong start to 2024 and we remain confident in our outlook."