General Dynamics' stock sinks after Deutsche Bank downgrades on Gulfstream concerns
General Dynamics Corp.'s stock shed 3.8% toward a six-week low, after the aerospace and defense company was downgraded at Deutsche Bank, which cited "alarming" investory and sales trends surrounding its Gulfstream business jets. Analyst Myles Walton cut his rating to hold, after being at buy for at least the last three years. He said the Gulfstream G650 inventory and price trends are "quickly becoming a problem," with 13% of G650s now available for sale, and rising. "We estimate the G650 drives two-thirds of the profit in the aerospace segment...but that the production we're seeing may be as much as 20%-30% ahead of true demand," Walton wrote in a note to clients. The stock has now lost 5.9% year to date, while the S&P 500 has slipped 0.7%.
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