UPDATE: Deutsche Bank Downgrades Lear Corporation on Valuation
In a report published Monday, Deutsche Bank analyst Rod Lache downgraded the rating on Lear Corporation (NYSE: LEA) from Buy to Hold, but raised the price target from $76.00 to $83.00.
In the report, Deutsche Bank noted, “Lear's Q3 EPS of $1.45 was meaningfully better than our $1.26 est. and cons. of $1.33. Looking at LEA's divisions, the Seating margin came in slightly better than we projected, at 5.4% vs. our 5.2% est. but still down vs. 6.1% in Q3'12. EPMS drove most of the upside with an op. margin of 10.9% vs. 7.5% in 3Q12 (including a 50 bp nonrecurring positive). LEA's overall corp. op. margin came in at 5.4% vs. our 4.7% est. While we were impressed by Lear's Q3, we are lowering our recommendation to Hold based on valuation.”
Lear Corporation closed on Friday at $77.20.
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