Barclays analyst David Strauss lowered his price target for General Dynamics to $256 to reflect lower pricing and margins on the G500/G600. The company continues to reiterate that Gulfstream margins will decline, Strauss tells investors in a research note. The analyst believes Gulfstream has had difficulty selling aircraft at price premiums and has had to discount in order to build out its backlog as the aircraft approach entry into service. He keeps an Overweight rating on General Dynamics.

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."