BofA Sees Opportunities Ahead For General Dynamics Corporation (GD)'s Combat Systems and Technologies Segments

General Dynamics Corporation (NYSE:GD) is among the top 8 defense stocks based on ChatGPT’s advice. On October 28, BofA analyst Ronald Epstein lifted the price target for the stock to $400 from $370 and reaffirmed a Buy rating on its shares.

In a post-earnings note to investors, the analyst noted that while the Marine Systems segment fueled growth in Q3 for the defense contractor, he sees significant opportunities ahead for the company’s Combat Systems and Technologies segments, considering recent projects like the Golden Dome and surging international demand for weapons.

On the same day, JPMorgan also raised its price target for General Dynamics Corporation (NYSE:GD) to $380 from $345, while maintaining an Overweight rating on its shares. The firm cited the defense contractor’s strong financial results during the third quarter as the reason behind the adjustment. The analyst noted that GD’s balance sheet capacity was growing.

In Q3, General Dynamics Corporation’s (NYSE: GD) diluted earnings per share came in at $3.88, up 15.8% from the same period last year, and above analysts’ estimates of $3.70 per share. Revenue soared 10.6% year-over-year to $12.9 billion. While all segments saw a rise in earnings, Aerospace in particular performed impressively, with a 41% jump in operating earnings, amid strong order activity for business jets.

The company’s Marine segment was another star performer, with revenue rising 13.8% year-over-year and operating earnings growing 12.8% from the previous year.

Overall, Wall Street analysts maintain a positive outlook for the stock with a one-year share price target of $379.17, representing a 9% upside potential from the close on October 29.

General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.

While we acknowledge the potential of GD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Largest Defense Stocks in 2025 and 14 Best Big Name Stocks to Invest in Right Now 

Disclosure: None.