Barclays analyst Carter Copeland upgraded General Dynamics (GD) to Overweight saying Gulfstream-related fears are overly discounted in the stock at current levels. Shares offer the best risk/reward in U.S. Aerospace & Defense, Copeland tells investors in a research note. He keeps a $157 price target for the stock. The analyst this morning also downgraded Lockheed Martin (LMT) to Underweight and Raytheon (RTN) to Equal Weight.

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.

Deutsche Bank raised the firm's price target on Lockheed Martin to $487 from $467 and keeps a Hold rating on the shares. The company reported solid Q1 results, the analyst tells investors in a research note. The firm says that while the Street mis-modeling the extra week played a part in this quarter's outperformance versus sell-side estimates, "there were also pockets of fundamental outperformance." It sees upside to full-year sales estimates.

Check out this morning's top movers from around Wall Street, compiled by The Fly. UP AFTER EARNINGS... To see the rest of the story go to thefly.com. See Story Here

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."