JPMorgan's analyst Ryan Brinkman has revised the price target for Lear (LEA, Financial), increasing it to $120 from the previous $119, while maintaining an Overweight rating on the stock. This adjustment follows Lear's better-than-expected performance in the first quarter, leading to an upward revision in estimates. Brinkman notes that a more favorable regulatory environment strengthens management's assurance in successfully managing tariff pass-throughs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Lear Corp (LEA, Financial) is $99.92 with a high estimate of $125.00 and a low estimate of $85.00. The average target implies an upside of 12.36% from the current price of $88.93. More detailed estimate data can be found on the Lear Corp (LEA) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Lear Corp's (LEA, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lear Corp (LEA, Financial) in one year is $150.38, suggesting a upside of 69.1% from the current price of $88.93. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lear Corp (LEA) Summary page.
LEA Key Business Developments
Release Date: May 06, 2025
- Revenue: $5.6 billion in the first quarter.
- Core Operating Earnings: $270 million.
- Operating Margin: Improved to 4.9%.
- Adjusted Earnings Per Share: $3.12.
- Operating Cash Flow: Use of $128 million.
- Seating Segment Sales: $4.2 billion, a decrease of 7% from 2024.
- E-Systems Segment Sales: $1.4 billion, a decrease of 7% from 2024.
- Seating Segment Operating Margin: 6.7%.
- E-Systems Segment Operating Margin: 5.2%.
- Share Repurchase: $25 million worth of shares repurchased.
- Global Production: Increased 1% compared to the same period last year.
- Headcount Reduction: Reduced global hourly headcount by 3,600 in the first quarter.
- Joint Venture in China: Consolidation expected to add approximately $70 million to reported revenue for 2025.
- New Business Awards: More than $750 million in annual sales, the most in any quarter in more than a decade.
- Available Liquidity: $2.8 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lear Corp (LEA, Financial) reported $5.6 billion in revenue for the first quarter of 2025, with core operating earnings of $270 million and an improved operating margin of 4.9%.
- The company achieved historic levels of positive net performance, contributing significantly to margin improvements in both seating and E-Systems.
- Lear Corp (LEA) won significant new business, including $750 million in annual sales for E-Systems, marking the most awarded business in any quarter in over a decade.
- The company successfully expanded its global leadership in seating, securing new ComfortFlex programs and a global seat program with key Chinese domestic automakers.
- Lear Corp (LEA) demonstrated strong operational performance, with efficiency improvements and savings from restructuring and automation investments driving durable operating performance.
Negative Points
- Lear Corp (LEA) faced a challenging production environment, with global production only increasing by 1% and significant declines in North America and Europe.
- The company experienced a use of $128 million in operating cash flow for the first quarter, impacted by timing and higher cash restructuring costs.
- Lear Corp (LEA) is dealing with significant uncertainty due to international trade negotiations and tariffs, which have introduced risks to production volume and mix.
- The company has paused its share repurchase program temporarily to maintain a strong liquidity position amid the uncertain environment.
- Lear Corp (LEA) withdrew its full-year guidance due to the wide range of potential outcomes related to production outlook and trade policy changes.
