Oppenheimer Upgrades General Dynamics (GD)

NEW YORK (TheStreet) -- General Dynamics (GD) was upgraded to "outperform" from "perform," Oppenheimer said. The firm set a price target of $119.

General Dynamics rose 1.4% to $101.06 in early market trading Thursday.

"Despite mixed 4Q13 earnings, several factors suggest GD-which underperformed its peers by 20%+ over the last year-could be on the cusp of a rerating. 1) GD is preparing to significantly accelerate share repurchases, an area where it has lagged other primes. 2) Gulfstream, which has struggled with orders for several years, appeared to have hit an inflection point in 4Q, posting B:B above 1 for the first time since 2008. 3) While guidance for GD's army-levered segments is dreadful for 2014, they're likely close to the bottom," analyst Yair Reiner wrote in the report.

By market open, shares have spiked 1.4% to $101.

TheStreet Ratings team rates GENERAL DYNAMICS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate GENERAL DYNAMICS CORP (GD) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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