J.P. Morgan Raises PT on Lear to $135 (LEA)

J.P. Morgan is out with its report today on Lear

, raising its price target from $98 to $135. In a note to clients, J.P. Morgan writes, "We raise our Dec. 2011 price target to $135 (vs. $98 earlier and based on a 4.5x EV/EBITDA on 2012e EBITDA), implying 27% upside to the current price. Our confidence on achieving that price target would improve considerably if/when the company announces plans for material cash deployment. We raise our 2011e core operating income (COI/EBIT) to $730MM (vs. $659MM earlier and at the higher end of LEA's 2011 guidance range of $700-740MM) and 2012e to $865MM (vs. $742MM earlier). While Q4 contribution margins were weak, we maintain a positive bias on this Neutral-rated stock." At the time of posting, shares of LEA were trading at $106.95, up 0.79% from Tuesday's close.