Goldman Initating Coverage On Lear (LEA)

Goldman Sachs is initiating coverage on Lear Corporation LEA with a Buy rating and a $115 price target. In a note sent to investors, Goldman writes, "We are initiating coverage of Lear Corporation (LEA) with a Buy rating and a six-month price target of $115, implying 21% upside from current levels. We believe that Lear's growth can outpace the industry aided by share gains in seating and content growth in the electrical and electronics segment as vehicle automation continues to rise. We see margin expansion from restructuring actions, operating leverage and efficiencies from scale driving 20% EBIT CAGR over the next two years. Exposure to the electric/hybrid vehicle (EV/HEV) market and a potential announcement of a dividend policy provides option value to investors in our view." Shares of LEA gained $1.33 yesterday to close at $96.46, a gain of 1.4%.