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Fly News Breaks for February 6, 2020
GD
Feb 6, 2020 | 04:51 EDT
JPMorgan analyst Seth Seifman upgraded General Dynamics to Overweight from Neutral with a price target of $225, up from $210. General Dynamics has been a "value trap," but with a free cash inflection "upon us," the stock's potential to return 17% of the current market capitalization over the next three years stacks up well versus peers, Seifman tells investors in a research note. With the shares lagging large cap Defense peers for years, the analyst assumes management will prioritize shareholders in capital allocation, making execution the key risk. The company's free cash flow should more than double from 2019 to 2021 to $4B, says Seifman.