Update shared on 01 Dec 2025
Garrett Motion's analyst price target has risen by $1.00 to $19.00 per share, as analysts cite the company's strong market positioning, product innovation, and ongoing momentum in both traditional and emerging automotive technologies.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight Garrett Motion's leading market share in turbochargers, which suggests solid competitive positioning and supports steady valuation growth.
- Recent product development initiatives focused on zero emission technologies are viewed as a positive driver for differentiated and future-facing growth.
- The company's exposure to increasing demand in both battery electric and plug-in hybrid vehicle markets is expected to further lift sales performance.
- International momentum, particularly in Europe, is noted as a growth catalyst as regional sales approach pre-pandemic levels.
- Some bearish analysts maintain a cautious outlook and assign a Hold rating due to perceived limits on near-term upside.
- Disciplined spending, while supporting operational efficiency, could restrict more aggressive expansion and innovation.
- Valuation concerns remain, with expectations for outperformance tempered by broader market dynamics and competition in both legacy and emerging technologies.
What's in the News
- PTC announced an expansion of its relationship with Garrett Motion, with Garrett adopting additional cloud-based lifecycle management solutions to support SaaS-driven transformation and future AI adoption (Client Announcements).
- Garrett Motion has completed the repurchase of 12,313,410 shares, representing 6.06% of total shares for $135.71 million under its buyback program announced in December 2024 (Buyback Tranche Update).
- The company raised its full-year 2025 earnings outlook, increasing expected net sales to a range of $3.5 to $3.6 billion and projected net income to a range of $265 to $295 million (Corporate Guidance Raised).
- Garrett Motion's board of directors declared a cash dividend of $0.08 per share, a $0.02 per share increase, payable on December 15, 2025 (Dividend Increases).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $19 to $19.00 per share, indicating marginal analyst optimism.
- Discount Rate ticked up minimally from 9.01% to 9.02%, reflecting a stable risk environment with little change in capital cost assumptions.
- Revenue Growth projection remains essentially unchanged at 3.46%.
- Net Profit Margin shows negligible movement, holding steady at approximately 9.77%.
- Future P/E multiple increased marginally from 10.68x to 10.68x, signaling a minor uptick in forward valuation expectations.
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