** Jefferies raises price target on defense and aerospace major General Dynamics GD.N to $400 from $380; upgrades rating to "buy" from "hold"

** New PT represents a 17% premium to stock's last close

** Shares of the company were up more than 1% in premarket trading

** Brokerage says GD's marine segment has delivered robust growth averaging ~15% with about 21% last quarter, well above its modest guidance

** Adds that strong growth is supported by significant U.S. Navy spending, including $125 billion for submarines, along with additional funding to expand production capacity and improve efficiency

** Jefferies sees sustained earnings strength, driven by a ramp-up in submarine production toward three per year and an improved aircraft sales mix in its aerospace business

** Fourteen of 25 brokerages rate the stock "buy" or higher, ten "hold" and one "sell"; their median PT is $390 - data compiled by LSEG

** As of last close, stock up 1.3% YTD