Deutsche Bank Sees Upside In Lear

Deutsche Bank is out with a research report on auto suppliers, and Lear Corporation LEA in general. It has a Buy rating on shares. In a note to clients, Deutsche Bank writes, "We are raising our Q2 estimates for North American suppliers, and would highlight Lear, TRW and Magna as suppliers that could outperform Q2 expectations. We expect Lear to report Q2 EPS of $1.40 vs. consensus of $1.16. We expect TRW to report Q2 EPS of $1.75 vs. consensus of $1.63. We expect Magna to report Q2 EPS of $1.40 vs. consensus of $1.32. We would also note that the outlook for 2H11 is improving in several respects, including European production (due to exports, and a slightly stronger than expected European SAAR) and material costs. We have also incorporated significant conservatism into our North American production forecast." Shares of LEA gained 21 cents yesterday to close at $51.07, a gain of 0.4%.