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Lear Corporation (NYSE:LEA), a global automotive technology leader in seating and electrical systems, has seen its stock price touch a 52-week low, trading at $86.05. According to InvestingPro analysis, the stock appears undervalued, with analysts setting price targets between $95 and $174. The company maintains a healthy 3.5% dividend yield, having consistently paid dividends for 15 consecutive years. This latest price level reflects a significant downturn from previous periods, as the company grapples with industry-wide pressures and economic headwinds. Over the past year, Lear’s stock has experienced a substantial decline, with a 1-year change showing a decrease of nearly 40%. Despite the challenges, the company maintains strong fundamentals with $23.31 billion in revenue and trades at an attractive P/E ratio of 9.7. Investors are closely monitoring the company’s performance, seeking signs of stabilization or a potential turnaround in the face of ongoing market volatility and supply chain constraints that have impacted the automotive sector at large. InvestingPro subscribers have access to 8 additional key insights about Lear’s current market position and future prospects.
In other recent news, Lear Corporation reported its fourth-quarter adjusted earnings per share of $2.94, surpassing the consensus estimate of $2.58. The company’s quarterly revenue slightly decreased by 1.7% to $5.71 billion but still exceeded expectations by $180 million. CFRA analyst Garrett Nelson upgraded Lear’s stock rating from Hold to Buy, raising the price target to $120, citing strong financial performance and future cash flow potential. In contrast, TD Cowen reduced its price target for Lear to $115 while maintaining a Buy rating, following the company’s reaffirmation of its fourth-quarter 2024 revenue guidance.
Lear has also announced a strategic acquisition of StoneShield Engineering, aiming to enhance automation in its E-Systems business. This acquisition is expected to accelerate the automation of production processes, aligning with Lear’s IDEA strategy focused on innovation and operational excellence. Additionally, Lear has introduced a new seating technology in collaboration with General Motors (NYSE:GM), launching the ComfortMax Seat in select GM vehicles starting in the second quarter of 2025.
In leadership developments, Amanda J. Pontes has been promoted to General Counsel, effective March 1, 2025, as part of Lear’s strategic organizational updates. These recent developments underscore Lear’s commitment to innovation, efficiency, and leadership in the automotive industry.
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