General Dynamics Wins $255M Defense Contract as Jefferies Raises Price Target to $385
Jefferies raised General Dynamics' price target to $385 from $360 and kept a Hold rating, characterizing the 2026 outlook as conservative. The company won a $255.13 million Strategic Weapon System Fire Control Subsystem contract for fiscal 2026–2027, with $485.31 million in options and U.K. Foreign Military Sale support.
1. Analyst Outlook Revision
Jefferies increased General Dynamics' price target by 6.9% to $385 from $360 while maintaining a Hold rating. The firm described the company's 2026 outlook as conservative following its latest earnings results, suggesting limited upside in the near term.
2. Strategic Weapon System Contract
General Dynamics secured a $255.13 million contract for the Strategic Weapon System Fire Control Subsystem covering fiscal 2026–2027, with $485.31 million in additional options. The award includes development, production, sustainment, modernization, repair, installation, training and technical support for both U.S. SSBN and SSGN fleets and the U.K.'s SSBN fleet, running through June 2033.