Throughout the last three months, 9 analysts have evaluated Lear (NYSE:LEA), offering a diverse set of opinions 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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 3 | 6 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 2 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 3 | 3 | 0 | 0 |
Analysts have recently evaluated Lear and provided 12-month price targets. The average target is $146.89, accompanied by a high estimate of $179.00 and a low estimate of $128.00. This current average represents a 1.63% decrease from the previous average price target of $149.33.
Understanding Analyst Ratings: A Comprehensive Breakdown
The analysis of recent analyst actions sheds light on the perception of Lear by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Joseph Spak | UBS | Lowers | Neutral | $128.00 | $136.00 |
| Colin Langan | Wells Fargo | Lowers | Equal-Weight | $132.00 | $139.00 |
| Joseph Spak | UBS | Lowers | Neutral | $136.00 | $142.00 |
| Adam Jonas | Morgan Stanley | Raises | Overweight | $160.00 | $150.00 |
| Dan Levy | Barclays | Lowers | Overweight | $165.00 | $175.00 |
| Itay Michaeli | Citigroup | Lowers | Neutral | $141.00 | $145.00 |
| Colin Langan | Wells Fargo | Raises | Equal-Weight | $139.00 | $134.00 |
| Colin Langan | UBS | Lowers | Neutral | $142.00 | $146.00 |
| Ryan Brinkman | JP Morgan | Raises | Overweight | $179.00 | $177.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Lear. This information offers 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: Delving into movements, analysts provide estimates for the future value of Lear's stock. This analysis reveals shifts in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Lear's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Lear analyst ratings.
Delving into Lear's Background
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.
Breaking Down Lear's Financial Performance
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Lear displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 2.55%. This indicates a notable increase in the company's 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 1.83%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Lear's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.23%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Lear's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.74%, the company may face hurdles in generating optimal returns from its assets.
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
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.