Citigroup Lowers General Dynamics (GD) Target but Sees Opportunity after Recent Pullback

On May 18, Citigroup lowered its terms proposal connected General Dynamics Corporation (NYSE:GD) to $364 from $380. It reiterated a Neutral standing connected the shares. The steadfast updated its models crossed the aerospace and defence assemblage and said it does not expect an “immediate V-shaped rally” unless determination is simply a solution to the struggle successful the Middle East. At the aforesaid time, Citi said the caller selloffs person created buying opportunities. The steadfast expects aerospace stocks to retrieve first, followed by defence companies.

During the Q1 2026 net call, President Danny Deep said the institution reported net of $4.10 per diluted stock connected gross of $13.5 billion. Senior Vice President and CFO Kimberly Kuryea stated that the institution secured much than $26 cardinal successful orders during the quarter. That resulted successful an wide book-to-bill ratio of 2:1 and pushed full backlog to $131 billion.

Deep said the Aerospace conception delivered a beardown show during the quarter. He noted that the institution delivered 38 aircraft, which was afloat successful enactment with expectations. He besides said the craft generated precise beardown gross margins and performed amended than the G650 models they replaced.

Speaking astir Marine Systems, Deep said quarterly maturation of 21% was chiefly driven by the Columbia-class and Virginia-class submarine programs. He besides noted that GDIT continued seeing beardown request for its AI and cybersecurity capabilities. Deep added that the institution updated its 2026 guidance and present expects EPS to scope betwixt $16.45 and $16.55.

General Dynamics Corporation (NYSE:GD) is simply a planetary aerospace and defence company. It provides products and services crossed concern aviation, vessel operation and repair, onshore combat vehicles, weapons systems and munitions, arsenic good arsenic exertion products and services.

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