Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Deutsche Bank initiated coverage on Garrett Motion (NASDAQ:GTX) with a Hold rating and a $14.00 price target on Monday. The stock, currently trading at $12.75, has shown remarkable strength with a 43.5% gain year-to-date, though InvestingPro analysis suggests it remains slightly undervalued.
The bank’s analysis suggests Garrett Motion is well-positioned in the evolving automotive landscape, where internal combustion engines (ICE) are proving more resilient than previously expected despite the industry’s shift toward electrification.
Deutsche Bank highlighted Garrett’s dominant market position in turbochargers, noting the company wins approximately 50% of new contracts in the industry and benefits from high switching costs that provide better pricing power than many automotive suppliers.
The bank pointed to Garrett’s disciplined capital expenditure and R&D spending alongside its variable cost structure as factors enabling "best-in-class FCF conversion," which supports robust capital returns to shareholders.
Despite these positive attributes, Deutsche Bank cited significant multiple expansion over the past year as the reason for its Hold rating, with Garrett’s valuation now at the high end of the bank’s supplier coverage universe at approximately 6x 2026E EBITDA.
In other recent news, Garrett Motion Inc. reported its Q2 2025 earnings, highlighting strong sales in gasoline turbochargers and progress in electric vehicle technology. The company maintained stable net sales at $913 million, demonstrating robust cash flow despite facing a challenging automotive market. Additionally, Stifel adjusted its price target for Garrett Motion, lowering it to $17 from $17.50, while maintaining a Buy rating. Stifel’s analysis pointed to Garrett Motion’s potential for differentiated growth through its Zero Emission portfolio, with a target of $1 billion in revenue by 2030. These recent developments provide investors with insights into the company’s current performance and future prospects.
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