Jefferies Has Buy On Lear Corp. (LEA)

Jefferies & Co. has a Buy rating and a $62 price target on shares of Lear Corp. LEA after the company reported earnings this morning. In a note to clients, Jefferies writes, "LEA upsided 1Q consensus EPS by 27%, operating income by 18%. Strength was driven by Seating revenue and margins. However, the company did not change its full-year outlook. If we strip out 1Q actual, the mid-point of guidance is 10% below consensus. It's unclear if this is conservatism due to Japan, or if it reflects the robust truck production mix in 1Q. We await more color on the call. This morning before the market, LEA posted continuing 1Q EPS of $1.46 vs. consensus and our estimate of $1.15 (27% upside). Reported EPS was $1.44, including a net $0.02 drag related to various restructuring charges and a gain on affiliate transaction. Quality of the report appears very strong, with LEA beating estimated consensus operating income of $170.2mn by 18%, driving $0.23 of EPS upside. While this was less than the $0.31 of EPS upside, the report was clearly a strong beat nonetheless." Shares of LEA are up $1.01 to $50.85, a gain of 2%.