Key Takeaways From Lear Analyst Ratings

5 analysts have shared their evaluations of Lear LEA during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $182.4, along with a high estimate of $200.00 and a low estimate of $170.00. A 0.73% drop is evident in the current average compared to the previous average price target of $183.75.

Investigating Analyst Ratings: An Elaborate Study

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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Lear compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Lear's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Lear's market position. Stay informed and make well-informed 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.

Lear: Delving into Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Positive Revenue Trend: Examining Lear's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.3% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher 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 2.3%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Lear's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.7%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Lear's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.9%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 0.57, Lear adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

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.

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