The Southfield, MI-based company provides automotive seat systems and individual seat component parts.
Keybanc continues to have a positive near-term and long-term outlook on automotive suppliers before the Detroit Auto Show and the Consumer Electronics Show.
"In 2016, we believe investors should consider suppliers that have a highly visible new business growth profile with upside opportunities driven by margin expansion and/or M&A," the firm said in an analyst note.
Lear is an attractive pick for value investors, Keybanc noted.
Despite the price target hike, the company's shares closed down by 1.73% to $120.71 on Monday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate LEAR CORP as a Buy with a ratings score of A+. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 2.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 36.04% and other important driving factors, this stock has surged by 25.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LEA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LEAR CORP has improved earnings per share by 36.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, LEAR CORP increased its bottom line by earning $8.24 versus $4.99 in the prior year. This year, the market expects an improvement in earnings ($10.47 versus $8.24).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Auto Components industry average. The net income increased by 29.2% when compared to the same quarter one year prior, rising from $140.10 million to $181.00 million.
- You can view the full analysis from the report here: LEA