Lear Corp. PT Raised to $86.00 at JPMorgan Chase & Co. (LEA)
Analysts at JPMorgan Chase & Co. hoisted their price target on shares of Lear Corp. (NYSE:LEA) from $80.00 to $86.00 in a research report issued to clients and investors on Monday, Analyst Ratings Network.com reports. The firm currently has a “neutral” rating on the stock. JPMorgan Chase & Co.’s price target points to a potential upside of 11.40% from the stock’s previous close.
The analysts wrote, “We raise our margin expectations for both LEA’s Seating and Electrical businesses after each tracked stronger, the firm provided better than expected preliminary 2014 Seating guidance, and management spoke bullishly of the long-term potential for margins in its Electrical business. We move 2015 Seating margins to 6.3% from 5.9% prior and 2015 Electrical margins to 10.5% from 9.9% prior. This prompts positive revisions to our EPS estimates: 2013 goes to an above-guidance $5.87 from $5.72 prior; 2014 to $7.40 from $6.80; and 2015 to $8.40 from $8.00. Our price target, meanwhile, rises to $91 from $86, on our higher estimates. This is after LEA reported another quarter of solidly better results Friday, with EPS tracking at $1.45 vs. JPMe $1.38 and Bloomberg consensus of $1.33. The quarter was most notable for standout Electrical results, as has been the case for the past several quarters. Electrical revenue tracked in-line with our estimates, but margin performed much better, at 10.9% vs. JPMe 9.5%. Even adjusted for the lumpiness of favorable commercial settlements (a +50 bp benefit in the quarter), Electrical margins handily surpassed our estimates. The quarter was also noteworthy for preliminary 2014 Seating margin guidance of ~6% and long-run Electrical margin guidance of 9.5-10% vs. a clearly too conservative 8% prior. Guidance in both respects tracked better than expected.”
Several other analysts have also recently commented on the stock. Analysts at Zacks downgraded shares of Lear Corp. from an “outperform” rating to a “neutral” rating in a research note to investors on Thursday, October 17th. They now have a $76.00 price target on the stock. Separately, analysts at Barclays raised their price target on shares of Lear Corp. from $73.00 to $77.00 in a research note to investors on Wednesday, October 16th. They now have an “equal weight” rating on the stock. Finally, analysts at Deutsche Bank reiterated a “buy” rating on shares of Lear Corp. in a research note to investors on Monday, September 16th. They now have a $76.00 price target on the stock. Six equities research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. Lear Corp. currently has a consensus rating of “Buy” and an average price target of $75.67.
Shares of Lear Corp. (NYSE:LEA) traded up 0.12% on Monday, hitting $77.29. The stock had a trading volume of 503,099 shares. Lear Corp. has a 52-week low of $37.17 and a 52-week high of $73.32. The stock has a 50-day moving average of $70.35 and a 200-day moving average of $61.21. The company has a market cap of $6.322 billion and a price-to-earnings ratio of 5.62.
Lear Corp. (NYSE:LEA) last posted its quarterly earnings results on Friday, October 25th. The company reported $1.45 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.30 by $0.15. The company had revenue of $3.90 billion for the quarter, compared to the consensus estimate of $3.83 billion. During the same quarter in the prior year, the company posted $1.29 earnings per share. The company’s quarterly revenue was up 10.7% on a year-over-year basis. On average, analysts predict that Lear Corp. will post $5.77 earnings per share for the current fiscal year.
Lear Corporation is a tier 1 supplier to the global automotive industry. The Company supplies its products to automotive manufacturers with automotive seat systems and related components, as well as electrical distribution systems and related components.
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