Credit Suisse Raises Price Target On Lear Corporation On Solid 4Q14 Results

In a report published Monday, Credit Suisse analyst Dan Galves reiterated an Outperform rating on

, and raised the price target from $114.00 to $115.00. In the report, Credit Suisse noted, “Overall, it was another impressive quarter for Lear, which remains our top pick for 2015. 4Q14 EPS (ex-items) was $2.27. well above our forecast and consensus of $2.07. Core operating income was $280 mln vs our $266 mln est (6.2% margin, up 130bp's y/y), with the outperformance evenly split between higher-than-expected revenue (+7% vs our +5% est) and good SG&A control. Each division performed well: Seating grew the top-line 10% and margins improved 90bps y/y (15% incremental margin), with EPMS posting 4% organic rev growth and 210bps of margin expansion (translating to a 49% incr margin ex-currency). We have raised our DCF-derived TP to $115 from $114, as we have rolled forward our valuation model one year. We maintain our Outperform rating.” Lear Corporation closed on Friday at $100.35.