UBS Reiterates a 'Buy' on Lear (LEA); Raising Numbers on Q4 Beat & Outlook

UBS reiterates a 'Buy' on Lear (NYSE: LEA) price target raised from $55 to $57.

UBS analyst says, "Sales were in-line while operating margins were 30bps better than our estimate and explained $0.10 of the beat. The margin surprise was driven by EPMS (electrical) which reported its highest margin since Q206. Lear also maintained its 2012 guidance provided at the Detroit Auto Show. The better EPMS margins increase our confidence in meeting the 2012 margin guidance for this segment."

"We are raising our 2012 EPS estimate from $4.95 to $5.05 to reflect higher EPMS margins. Our revised outlook is in-line with company guidance. However, we are lowering our 2013 to 2015 estimates to reflect a higher tax rate (result of release of valuation allowance). Our 2013 EPS estimate declines to $4.90 from $5.25, our 2014 estimate declines to $5.35 from $5.76, and our 2015 estimate declines to $5.70 from $6.10."

For an analyst ratings summary and ratings history on Lear click here. For more ratings news on Lear click here.

Shares of Lear closed at $42.50 yesterday.

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