General Dynamics (NYSE: GD) Stock Analysis: Price Target Raised Amid Strong Performance and Record Backlog
Key points
- RBC Capital analyst Ken Herbert has raised the price target for General Dynamics to $400.00 per share.
- General Dynamics reported stronger third-quarter results, with profit rising nearly 16%, driven by strong performance in Gulfstream jets and shipbuilding.
- The company's order backlog reached a record $220.30 billion, indicating strong future revenue potential and supporting continued growth.
General Dynamics (NYSE: GD) makes Gulfstream business jets, military ships, and other defense products. RBC Capital analyst Ken Herbert raises his price target for the stock to $400.00. At about $374.00 at the time of publication, General Dynamics trades roughly 7% below that target. A price target is an analyst’s estimate, not a guaranteed future price.
The higher target comes as General Dynamics reports stronger results. Third-quarter profit rises nearly 16%, driven by Gulfstream jets and shipbuilding, as highlighted by Reuters. Profit and revenue improve across all business lines, as highlighted by The Wall Street Journal.
The company’s order backlog also supports the case for growth. Its backlog reaches a record $220.30 billion, including $146.80 billion in Marine Systems, as highlighted by Seeking Alpha. A backlog is work customers have ordered but the company has not yet delivered. It offers a clearer view of potential future revenue, though delivery takes time.
In the first nine months of 2026, revenue rises 10.4% and net income increases 14.57%, as highlighted by Seeking Alpha. The publication reiterates its Buy rating, citing the backlog and a valuation it considers attractive relative to peers. Aerospace also maintains high margins and strong demand.
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