Credit Suisse also increased 2015 earnings estimates to $8.83 from $8.40 per share, with 2016 and 2017 earnings estimates raised to $9.55 from $9.30 per share, and to $10.53 from $10.19 per share, respectively.
Yesterday, General Dynamics announced its 2015 second quarter financial results with revenue increasing 5.5% to $7.9 billion from last year. Earnings were up 20.7% to $2.27 per share, compared to $1.88 in the second quarter of 2014.
"The company has executed very well in defense in the face of a challenging defense budget environment, managing down domestic capacity and finding new work overseas," Credit Suisse analysts said.
In addition, the firm believes that the next couple of years will be characterized by defense revenue growth recovery, along with continued execution and share repurchase.
General Dynamics is an aerospace and defense company that offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; communications and information technology systems and military and commercial shipbuilding.
Shares of General Dynamics are rising 0.30% to $150.41 in mid-morning trading on Thursday.
Separately, TheStreet Ratings team rates GENERAL DYNAMICS CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL DYNAMICS CORP (GD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins."GD data by YCharts