General Dynamics Upgraded To Buy At Seaport Global, Shares Rise

Core Viewpoint - General Dynamics Corp. shares rose nearly 2% after Seaport Global Securities upgraded the stock to Buy from Neutral with a price target of $376, citing attractive entry points due to government budget debates and potential temporary shutdowns [1]. Group 1: Stock Upgrade and Market Reaction - Seaport Global Securities upgraded General Dynamics to Buy from Neutral, setting a price target of $376 [1]. - The stock experienced a nearly 2% increase intra-day following the upgrade [1]. Group 2: Government Budget Concerns - Near-term concerns regarding government budget debates and the possibility of a temporary shutdown were highlighted as attractive entry points for investors [1]. - Analysts noted that execution had improved, alleviating prior concerns, while investors remained cautious ahead of fiscal year-end budget negotiations [2]. Group 3: Company Fundamentals and Growth - The upgrade emphasized backlog growth driven by Pentagon priorities and improved backlog-to-revenue conversion [3]. - Incentive-based contracts were noted to support margins, indicating strengthening fundamentals for the company [3]. - With improving visibility, investors are beginning to focus on estimates for 2027–2028, where upside to consensus expectations is anticipated [3].