UPDATE: Credit Suisse Raises Target to $82 on General Dynamics

Credit Suisse reiterates its Outperform rating on General Dynamics

and raises its price target to $82 from $75 a share as the company guides realistically on combat outlook. Credit Suisse says, “2012 Outlook Below Street: GD introduced '12 guidance yesterday providing a $7.10-$7.20 range that was 6% below the Street's $7.58 at the mid-pt. Despite not embedding share repo, guidance was light due to declining organic sales which are implied to be down ~1.5-2% in total and down ~6% for the defense. Vangent & Force Protection contribute ~$1.35B to drive sales guidance to +1.4% in '12. We embed $1.5B of buyback (~$0.25 in EPS) in our revised '12E of $7.30 (from $7.57). Our '13E falls to $7.67 from $7.75 and our 2014E remains $8.20.” GD closed at $71.57 a share yesterday.