Assessing Lear: Insights From 6 Financial Analysts

During the last three months, 6 analysts shared their evaluations of Lear LEA, revealing diverse outlooks from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $116.17, a high estimate of $143.00, and a low estimate of $99.00. This current average has decreased by 3.33% from the previous average price target of $120.17.

Diving into Analyst Ratings: An In-Depth Exploration

The standing of Lear among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Lear. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

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.

About Lear

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.

Financial Insights: Lear

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Decline in Revenue: Over the 3 months period, Lear faced challenges, resulting in a decline of approximately -3.4% in revenue growth as of 30 September, 2024. This signifies a reduction 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.43%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Lear's ROE stands out, surpassing industry averages. With an impressive ROE of 2.84%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Lear's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.92%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Lear's debt-to-equity ratio is below the industry average at 0.59, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

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.