Citi Reports On Meetings With LEA's Management

Citi is maintaining its Buy rating and its $64 price target on Lear Corp. LEA after an investor meeting with the company's senior management. In the report, Citi states, “While acknowledging recent signs of slowing macro conditions, Lear appeared confident in its own trajectory, reminding us that current 2011 guidance has prudently baked-in production assumptions that are below CSM estimates. Management also appeared confident about the long-term margin outlook at both segments, highlighting vertical integration benefits in Seating and organic growth in Electrical. New business activity appears to be pacing well, and Lear affirmed that its long-term objective is to continue growing above industry production. On M&A, management appears focused on niche activity. On cash deployment, we believe management remains firmly committed to further enhancing future shareholder value.” LEA closed yesterday at $49.44.