EFTA01457556.pdf

Deutsche Bank Markets Research Elating Date 19 May 2015 Buy General Dynamics Alert Breaking News North America United States Exalango Mcke, Price at 19 May 2015 ILISO) 140 28 Indust( ials GD N N NYS GD 166 00 Price Target Aerospace & Defense 52-week range 145.36 - 113.08 Electronics Discretion only Gulfstream can pull off My14,4 `And xi, MA Research Analyst General Dynamics announced this morning an expansion of Qatar Executive's Louis Relletto. CFA order for G500, G600, and G650 Gulfstream business jets, from "up to 20 Associate Analyst aircraft" to "up to 30 aircraft." In perspective, Gulfstream builds 110-120 1+11 aircraft/year. It is unclear how many of the 30 aircraft are firm orders, but from iMMINSINIEN the release we posit that some solid order activity should drop into backlog in 2Q with the final deal just signed. !Stock & option Lrwid,ty data As important and without fanfare —indicative of the discretion in the Market Cap 1USD) 45,253.9 Gulfstream brand —was the announcement that the G500 had its first flight Shares outstanding (ml 322.6 yesterday. We continue to see the program nicely ahead of schedule (-6mo) Free Iloat Obi 100 vs. the advertised certification set for 2017 and entry into service in 2018. Volume (19 May 2015) 277,912 Option volume (und. dus.. IM 676,521 avg.) Sane Lam-h• Brk "Lev eisaa EYE 12/31 2014A 2015E 2016E 10 EPS 1.71 2.14A 20 EPS 1.88 1.99 30 EPS 2.05 2.12 40 EPS 2.20 2.29 re EPS (US011 7.83 8.54 8.89 P/E Ix) 15.2 16.4 15.8 Source.Dane*ant Deutsche Bank Securities Inc. The views expressed above accurately reflect the personal views of the authors about the subject companies and its(their) securities. The authors have not and will not receive any compensation for providing a specific recommendation or view. Deutsche Bank does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Prices are current as of the end of the previous trading session unless otherwise indicated and are sourced from local exchanges via Reuters, Bloomberg and other vendors. FOR OTHER IMPORTANT DISCLOSURES PLEASE VISIT htto://gm.db.com/ger/disclosure/Disclosure.ectsr?ricCode=GD.N MCI (PI 124/04/2015. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0117150 CONFIDENTIAL SDNY_GM_00263334 EFTA01457556