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Wall Street JournalCritical Insights From Lear Analyst Ratings: What You Need To Know
In the last three months, 11 analysts have published ratings on Lear (NYSE:LEA), offering a diverse range of perspectives 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 | 3 | 5 | 3 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 2 | 1 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 1 | 3 | 1 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $147.09, a high estimate of $185.00, and a low estimate of $114.00. Highlighting a 7.26% decrease, the current average has fallen from the previous average price target of $158.60.
Interpreting Analyst Ratings: A Closer Look
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Dan Levy | Barclays | Lowers | Overweight | $140.00 | $150.00 |
| John Murphy | B of A Securities | Lowers | Buy | $170.00 | $180.00 |
| Mark Delaney | Goldman Sachs | Lowers | Buy | $135.00 | $144.00 |
| Adam Jonas | Morgan Stanley | Lowers | Overweight | $145.00 | $150.00 |
| Colin Langan | Wells Fargo | Lowers | Equal-Weight | $114.00 | $131.00 |
| Edison Yu | Deutsche Bank | Announces | Hold | $132.00 | - |
| Adam Jonas | Morgan Stanley | Lowers | Overweight | $150.00 | $160.00 |
| Dan Levy | Barclays | Lowers | Overweight | $150.00 | $155.00 |
| Colin Langan | Wells Fargo | Lowers | Equal-Weight | $131.00 | $132.00 |
| John Murphy | B of A Securities | Lowers | Buy | $185.00 | $205.00 |
| Ryan Brinkman | JP Morgan | Lowers | Overweight | $166.00 | $179.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Lear. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey 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.
To gain a panoramic view of Lear's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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.
Lear: A Financial Overview
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: Lear's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 0.22%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 2.88%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.57%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Lear's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.17%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.58, Lear adopts a prudent financial strategy, indicating a balanced approach to debt management.
Analyst Ratings: Simplified
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.
This article was generated by Benzinga's automated content engine and reviewed by an editor.