General Dynamics Corp. (NYSE: GD) shares advanced nearly 2% intra-day Monday after Seaport Global Securities upgraded the stock to Buy from Neutral with a $376 price target.
The firm said near-term concerns about government budget debates and the possibility of a temporary shutdown presented an attractive entry point, with valuation appearing compelling. New tax incentives were also expected to support business jet demand.
Analysts noted that execution had improved, easing prior concerns, while investors remained cautious ahead of fiscal year-end budget negotiations. Seaport argued that any government shutdown would likely be short-lived, with the company’s fundamentals continuing to strengthen.
The upgrade also cited backlog growth from Pentagon priorities, improved backlog-to-revenue conversion, and incentive-based contracts supporting margins. With improving visibility, Seaport said investors were beginning to focus on 2027–2028 estimates, where it saw upside to consensus expectations.
