10 Analysts Have This To Say About Lear

In the latest quarter, 10 analysts provided ratings for Lear LEA, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have set 12-month price targets for Lear, revealing an average target of $142.7, a high estimate of $170.00, and a low estimate of $114.00. A 5.85% drop is evident in the current average compared to the previous average price target of $151.56.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Lear's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Lear. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Lear compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Lear's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Lear's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Lear analyst ratings.

Get to Know Lear Better

Lear designs, develops, and manufactures automotive seating and electrical systems and components. Seating components include frames and mechanisms, covers (leather and woven fabric), seat heating and cooling, foam, and headrests. Automotive electrical distribution and connection systems and electronic systems include wiring harnesses, terminals and connectors, on-board battery chargers, high-voltage battery management systems, high-voltage power distribution systems, domain controllers, telematics control units, gateway modules, vehicle positioning for automated and autonomous driving, embedded control software, cloud and mobile device software and services, and cybersecurity. Lear's largest customer and regional market is GM and North America at 20% and 44% of 2022 revenue, respectively.

Breaking Down Lear's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Lear's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 0.22%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Lear's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 2.88%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.57%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Lear's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.17%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Lear's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.58.

The Significance of Analyst Ratings Explained

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.