Citi has commenced coverage of Lear Corporation (LEA, Financial) with an optimistic "Buy" rating, setting a price target of $123. This move is part of a broader analysis of the auto manufacturers and auto parts and equipment sectors. The analysis suggests that ongoing trade tensions, particularly around tariffs, could continue to cause fluctuations in U.S. light vehicle sales until a resolution is reached.
Despite these uncertainties, recent sales trends have been stronger than anticipated. March saw robust sales numbers, and this positive momentum appears to have carried into April. Citi anticipates that once the current tariff-related uncertainties diminish, underlying demographic factors in the U.S. will bolster a sustained demand for light vehicles. This demand is expected to average between 16 million to 18 million units annually, a figure projected to be about 10% higher than the total for 2024.
Citi's analysis further suggests that these demographic trends will necessitate an increase in inventory levels, which would serve as a catalyst for production in the auto industry. Such developments are likely to enhance the financial outlook for the sector. Importantly, Citi believes that auto dealers are strategically positioned to manage and thrive amid the prevailing uncertainties.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Lear Corp (LEA, Financial) is $97.46 with a high estimate of $125.00 and a low estimate of $83.00. The average target implies an upside of 20.54% from the current price of $80.85. More detailed estimate data can be found on the Lear Corp (LEA) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Lear Corp's (LEA, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lear Corp (LEA, Financial) in one year is $150.16, suggesting a upside of 85.73% from the current price of $80.85. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lear Corp (LEA) Summary page.
