After a pullback in share price, General Dynamics Corporation GD is a now good buy in a jet manufacturing industry that looks to be turning a corner, Argus said Monday in upgrading the stock.
The Analyst
Argus analyst John Eade upgraded the stock to a Buy rating with a $195 target price.
The Thesis
Arugs was previously cautious on General Dynamics as part of a broader caution on the aerospace segment, particularly jet manufacturing, which is in a transition period to new products.
"However, in the most recent quarter, aerospace revenue, operating earnings, and bookings all improved, and we think the business has turned the corner," Eade wrote in a Monday note.
General Dynamics, he said, is focused on long-term growth through modest sales increases, margin improvement, and share
buybacks. And, he said, it has a history of delivering positive EPS surprises and is aggressively returning cash to shareholders through increased dividends.
He noted some discussion over U.S. trade relations have hurt the stock, but that the recent pullback in the price now makes it even more attractive.
GD Price Action
General Dynamics shares were trading flat Monday afternoon.
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