Shares of General Dynamics (GD) are up a modest 2% for the year.
The company offers a broad portfolio of products and services in business aviation, combat vehicles, weapons systems and munitions, military and commercial shipbuilding, and communications and information technology.
Around 70% of its revenues is generated by Department of Defense work, the analyst notes but it is its exposure to shipbuilding that makes it a againer from a Romney victory."There are two large surface and sub-surface ship manufacturers left in the US (the other being Huntington Ingalls), and their yards would see increased volumes if Governor Romney is able to increase the annual ship buy from the planned nine to 10 per year to 15," the analyst wrote. "The exact mix within the Romney plan has not been revealed, but one aspired increase is a move from two to three Virginia-class submarines per year. These cost roughly $2 billion each, with nearly a five-year lead time." 13 analysts rate it a buy or outperform. Seven analysts have a neutral rating, while three analysts are negative on the stock.