UPDATE: Wells Fargo Starts Lear (LEA) at Overweight
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Wells Fargo analyst Colin M. Langan initiates coverage on Lear (NYSE: LEA) with a Overweight rating and a price target of $24.00.
The analyst comments "Our 2021E and 2022E EPS estimates are $14.55 and $18.90. We expect a few quarters of relatively stable E-Systems margins to ease investor concerns about potential further declines in this segment. This should refocus investors on the strong core Seating business, and the EV and connected growth opportunities from E-Systems investments (like Xevo). Despite the excitement for EV assets, we're surprised this segment doesn't get a higher valuation since it has positive EV upside. More important, Lear has a strong record of FCF conversion. This cash can be used to drive shareholder value through share buybacks."
Shares of Lear closed at $170.84 yesterday.
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