CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $275, raised $20, reflects a 16.5x multiple of projected ’25 EPS, slightly above GD’s long-term historical forward average. We think a modest premium is reasonable given what should be an improving operating margin environment. We cut our ’24 EPS estimate by $0.17 to $14.67 and start ’25’s at $16.63. Q4 EPS of $3.64 vs. $3.58, missed the consensus view by $0.03, but we believe the miss was due entirely to the Gulfstream G700 not being certified by year-end, yielding fewer sales of the G700 in Q4 than expected. We do think GD can recover most of the lost ground on this front in ’24. GD’s book-to-bill ratio in Q4 in Aerospace was a solid 1.2x, and we think this augurs well over the medium term. Near-term, execution risk looms large, as GD aims to accelerate deliveries of the G700 and may also face some risk to the G280, as its Israel-based supplier may experience delays in light of the war in Gaza. Shares also yield 2.0%.