Ratings for Lear (NYSE:LEA) were provided by 10 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 1 | 8 | 0 | 0 |
| Last 30D | 0 | 0 | 2 | 0 | 0 |
| 1M Ago | 1 | 0 | 3 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 3 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $99.9, a high estimate of $125.00, and a low estimate of $83.00. A 7.02% drop is evident in the current average compared to the previous average price target of $107.44.
Breaking Down Analyst Ratings: A Detailed Examination
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 |
|---|---|---|---|---|---|
| Joseph Spak | UBS | Raises | Neutral | $95.00 | $83.00 |
| Colin Langan | Wells Fargo | Raises | Equal-Weight | $89.00 | $87.00 |
| Michael Ward | Citigroup | Announces | Buy | $123.00 | - |
| Dan Levy | Barclays | Lowers | Equal-Weight | $85.00 | $115.00 |
| Joseph Spak | UBS | Lowers | Neutral | $83.00 | $102.00 |
| Mark Delaney | Goldman Sachs | Lowers | Neutral | $84.00 | $117.00 |
| Adam Jonas | Morgan Stanley | Lowers | Overweight | $125.00 | $135.00 |
| Chris McNally | Evercore ISI Group | Lowers | In-Line | $110.00 | $125.00 |
| Joseph Spak | UBS | Lowers | Neutral | $102.00 | $104.00 |
| Colin Langan | Wells Fargo | Raises | Equal-Weight | $103.00 | $99.00 |
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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lear compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Lear's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Capture valuable insights into Lear's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Lear analyst ratings.
Delving into Lear's Background
Lear Corp designs, develops, and manufactures automotive seating and electrical systems and components. The company has two reporting segments Seating and E-Systems. 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. The company earns most of its revenue from the seating segment.
Breaking Down Lear's Financial Performance
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Decline in Revenue: Over the 3M period, Lear faced challenges, resulting in a decline of approximately -2.17% in revenue growth as of 31 December, 2024. This signifies a reduction 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: Lear's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.54% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Lear's ROE excels beyond industry benchmarks, reaching 1.91%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Lear's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.61%, the company showcases efficient use of assets and strong financial health.
Debt Management: Lear's debt-to-equity ratio is below the industry average. With a ratio of 0.65, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Significance of Analyst Ratings Explained
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.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.