Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Stifel initiated coverage on Garrett Motion (NASDAQ:GTX) with a Buy rating and a price target of $17.50 on Thursday. According to InvestingPro data, the stock is currently trading slightly below its Fair Value, with a P/E ratio of 9.4x and an EV/EBITDA of 7x.
The research firm highlighted Garrett Motion’s potential to deliver differentiated growth from its Zero Emission portfolio, noting the company targets $1 billion of revenue by 2030 from this segment. The company currently generates annual revenue of $3.46 billion, with an EBITDA of $580 million.
Stifel pointed out that Garrett’s legacy turbocharging business operates in well-structured markets that are likely to gain market share despite declining addressable markets.
The firm expects the turbocharging business to produce strong free cash flow that can fund the company’s Zero Emission growth initiatives.
Stifel also noted that the strong cash flow generation could support returning value to shareholders through share repurchase programs.
In other recent news, Garrett Motion has been the focus of analyst attention with notable developments. BNP Paribas Exane initiated coverage on Garrett Motion, assigning an Outperform rating and setting a price target of $14.00. The research firm highlighted Garrett Motion’s strong financials and potential to expand into the electric vehicle and industrial markets. Meanwhile, BWS Financial reiterated its Buy rating, also with a $14.00 price target, citing favorable currency movements and limited exposure to U.S. trade uncertainties. BWS Financial pointed out that the weakening U.S. dollar against the euro could allow Garrett Motion to surpass its quarterly estimates. These recent developments reflect a positive outlook from analysts regarding Garrett Motion’s financial performance and market positioning.
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