Jefferies Lifts Price Target on General Dynamics Corporation (GD) to $385, Maintains Hold Rating

General Dynamics Corporation (NYSE:GD) is among the 10 best American defense stocks to buy according to Wall Street analysts.

On February 2, Jefferies analyst Sheila Kahyaoglu lifted the price target on the stock to $385 from $360. The firm described the defense contractor’s outlook for 2026 as conservative and maintained a Hold rating.

This follows BofA Securities’ reiteration of a Buy rating on the stock with a price target of $400 on January 30. The firm acknowledged strength across the company’s defense business, while noting that the outlook for Gulfstream had failed to impress investors.

Moreover, while BofA Securities anticipates an improvement in profit margins ahead, it does not expect them to exceed the 15-17% range until 2028.

Based on the recommendations of 14 analysts, General Dynamics Corporation (NYSE: GD) is rated a Moderate Buy, with a 13.83% share price upside as of the close on February 5.

On January 28, the company reported strong fourth-quarter fiscal 2025 results, with growth in the combat and marine systems segments helping it beat estimates for both earnings and revenue.

However, the aerospace and defense giant’s forecast for earnings in 2026 fell shy of analysts’ estimates. The company has projected annual EPS to be between $16.10 and $16.20, below expectations of $17.29 per share, citing a bigger impact from tariffs compared to what it absorbed in 2025.

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

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Disclosure: None.