UPDATE: J.P. Morgan Lowering Price Target On Lear Corporation

J.P. Morgan Chase & Co. is out with a research report on Lear Corporation LEA and is lowering its price target to $69 from $70, and it has a Neutral rating on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "LEA had a solid Q2, expectedly raised guidance, and provided nuanced color on backlog, engineering costs pace, antitrust investigation, and balance sheet plans. Last Friday, we revised our LEA estimates to reflect the Q2 beat and also our now-lower 2012 NA production forecast of 13.0MM (2012E EPS of $5.50 is ~10% below consensus), though European production risk remains an incremental risk that we do not believe is fully factored into our 2012 supplier estimates. Nonetheless, LEA is starting to look more attractive, primarily because the stock seems to be nearing historical trough valuations (20% EV/sales implying a $37 price, ~10% below current price)." Shares of LEA lost $3.60 to close at $40.82.