Where Lear Stands With Analysts

Lear LEA has been analyzed by 7 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $113.86, a high estimate of $143.00, and a low estimate of $99.00. Highlighting a 4.66% decrease, the current average has fallen from the previous average price target of $119.43.

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive Lear is derived from recent analyst actions. The following is a detailed summary of 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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lear compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Lear's stock. This examination reveals shifts 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.

Delving into Lear's Background

Lear Corp designs, develops, and manufactures automotive seating and electrical systems and components. The company has two reporting segments Seating and E-Systems. 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. The company earns most of its revenue from the seating segment.

Financial Insights: Lear

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Decline in Revenue: Over the 3 months period, Lear faced challenges, resulting in a decline of approximately -2.17% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Lear's net margin excels beyond industry benchmarks, reaching 1.54%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Lear's ROE stands out, surpassing industry averages. With an impressive ROE of 1.91%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Lear's ROA stands out, surpassing industry averages. With an impressive ROA of 0.61%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Lear's debt-to-equity ratio is below the industry average. With a ratio of 0.65, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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