If Keybanc Liked Lear Corp At $120, 'We Should Love It At $102 And Change'

Lear Corporation LEA shares are hovering near the $102 level on Wednesday amid continued downside in the commodities space and a down-start to 2016.

The following comes from a trader familiar with the stock:

It is hard for me to ignore the auto supply market with average gasoline prices around the country heading toward $1.50 per gallon, the average age of the U.S. light vehicle fleet at 11.5 years, unemployment at 5.5%, and the fed funds rate at 0.25%. All four of these factors are major drivers in the decision making process surrounding a new car purchase.

Lear designs, develops, engineers, manufactures, assembles, and supplies automotive seating, electrical distribution systems, and related components primarily to automotive original equipment manufacturers worldwide.

Lear is currently trading inline with its current cycle valuation, and is trading at its 100 week SMA and lower weekly bollinger band. The stock is 20% off its 52 week high that was set on 12/1/15.

On 1/4/16 Keybanc analysts came out and raised their price target from $138 to $150 citing, "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 stock was trading at $120, so if they liked it at $120, we should love it at $102 and change.