UPDATE: Jefferies Color on LEA Initiation

Jefferies, which initiated coverage of Lear Corp. LEA, is providing some color on the stock.

“We think auto stocks are likely to transition into top-line stories this year as industry-wide operating leverage fades,” Jefferies writes. “In our view, LEA offers an attractive means to participate in continued industry sales growth with below-average downside risk due to the stock's 4.2x forward EBITDA (a 25% discount to the group average).”

Lear closed Thursday at $94.99.