Bank of America lifts Lear’s price target
Bank of America raised its price target for Lear Corporation (NYSE:LEA) from $110.00 to $115.00. The revised target reflects a projected 26.82% upside from the current stock price of $90.68. Analysts at Bank of America maintain a “buy” rating on the auto parts manufacturer.
Broader analyst consensus on Lear
Other brokerages also reviewed Lear’s valuation. UBS Group raised its price from $83.00 to $95.00. UBS now holds a “neutral” rating. Wall Street Zen upgraded Lear from a “hold” to a “buy” on 15 May. TD Cowen downgraded the stock from “buy” to “hold” on 7 March with a $95.00 price target.
Citigroup launched coverage of Lear on 23 April, assigning a “buy” rating and $123.00 price target. Wells Fargo raised its target from $89.00 to $100.00 on 19 May and issued an “equal weight” rating.
Lear now holds one “sell”, eight “hold”, and five “buy” ratings, according to MarketBeat. The average price target across firms is $107.09.
Lear’s recent price and earnings performance
Shares of Lear traded down $1.90 to close at $90.68 on Monday. The stock’s 52-week range spans from $73.85 to $126.85. The company’s market capitalisation stands at $4.85 billion.
Lear posted first-quarter earnings on 6 May. The company reported earnings per share of $3.12, surpassing consensus estimates of $2.64. Revenue came in at $5.56 billion, exceeding expectations of $5.47 billion.
The quarterly result showed a 7.2% year-on-year decline in revenue. Last year, Lear reported $3.18 per share for the same quarter. Analysts expect Lear to post full-year EPS of 12.89.
Lear holds a price-to-earnings ratio of 10.63 and a price/earnings-to-growth ratio of 0.51. The stock has a beta of 1.29. Lear’s 50-day moving average sits at $87.68, while the 200-day average stands at $92.00.
Financial metrics and industry comparisons
Lear’s net margin stands at 2.09%. Its return on equity is 14.53%, reflecting efficient capital use. The current ratio is 1.32, while the quick ratio is 1.03. Lear’s debt-to-equity ratio is 0.57, indicating controlled leverage.
In the March quarter, Lear recorded a revenue drop of 7.24%. The company’s revenue growth lags behind other firms in the Consumer Discretionary sector.
Despite the top-line decline, Lear’s profitability remains above industry averages. The firm reported a 1.45% net margin. It holds a return on equity of 1.77% and a return on assets of 0.56%.
Recent insider trading activity
Director Conrad L. Mallett, Jr. sold 1,187 shares on 16 June. The shares sold at an average of $92.86 per share, totalling $110,224.82. Following the transaction, Mallett holds 84 shares valued at $7,800.24.
The disclosure was filed with the U.S. Securities and Exchange Commission. Insiders currently hold 0.91% of Lear’s outstanding stock.
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Hedge fund movements and institutional positions
Institutional investors continue to adjust their holdings. Allspring Global Investments Holdings LLC increased its position by 7,452.3% in Q4. The firm now holds 173,855 shares valued at $16.13 million.
The New York State Teachers Retirement System increased its stake by 2.0%, now holding 44,823 shares. Principal Securities raised its holdings by 19.5%, totalling 3,146 shares.
Financiere des Professionnels Fonds d’investissement inc. increased its holding by 44.3%, acquiring 38,232 shares. The State of New Jersey Common Pension Fund D lifted its position by 33.4% to 22,584 shares.
In total, institutional investors and hedge funds own 97.04% of Lear’s stock.
Lear Corporation: Company profile
Lear Corporation designs and manufactures automotive seating and electrical systems. The firm operates across North America, Europe, Asia, Africa, and South America.
Its seating segment produces seat systems, foam, mechanisms, trim covers, headrests, and related components. It also provides surface materials including leather and fabrics. Lear supplies major auto manufacturers with parts for SUVs, trucks, and compact vehicles.
Market outlook and investor sentiment
Analysts and institutional investors express mixed views on Lear’s future performance. Despite short-term revenue pressures, strong earnings, insider activity, and analyst upgrades support market confidence.
The revised price targets suggest potential growth amid operational stability and global demand in the automotive parts sector.
