Update shared on05 Oct 2025
Fair value Increased 8.42%Analysts have raised their price target for Garrett Motion by approximately $1.33 to $17.17, citing ongoing strength in the auto market, increased product development for plug-in hybrids and zero-emission technologies, and improved growth outlooks in both North America and Europe.
Analyst Commentary
Recent analyst notes highlight several positive factors contributing to Garrett Motion’s raised price targets and continued Buy ratings. These factors underscore the company's growth prospects and operational progress.
Bullish Takeaways- Bullish analysts observe that Garrett Motion is well-positioned to capitalize on ongoing strength in the automotive market. The company benefits directly as consumers increasingly purchase battery electric and plug-in hybrid vehicles.
- Product development initiatives, especially within the plug-in hybrid and zero-emission technology segments, are expected to support differentiated long-term growth and strengthen the company's competitive position.
- Expansion in both North American and European markets is viewed as a key growth driver. Recent trends in Europe show improvement as volumes approach pre-2023 levels.
- Garrett’s leadership in supplying innovative turbocharger solutions and its investment in emerging zero emission technologies are anticipated to broaden its addressable market and deliver incremental value over time.
What's in the News
- The company has revised its full-year 2025 earnings guidance and now expects net sales between $3.4 billion and $3.6 billion, with net income between $233 million and $278 million. This reflects improved outlooks for both the core business and industry trends (Key Developments).
- The company expects 2025 light vehicle industry production to decline by 3% or remain flat compared to 2024. Commercial vehicle industry growth could be flat or increase by up to 2% (Key Developments).
- The company reported continued investments in research, development, and engineering, allocating 4.2% of sales for 2025. Capital expenditures are projected at 2.5% of sales (Key Developments).
- The company completed the repurchase of 5,603,013 shares, equating to 2.73% of outstanding shares, for $51.69 million as part of an ongoing buyback program (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from $15.83 to $17.17, reflecting an upward revision in fair value assessments.
- Discount Rate remains essentially unchanged, rising slightly from 8.74% to 8.74%.
- Revenue Growth projections have improved slightly, increasing from 2.95% to 3.01%.
- Net Profit Margin estimates have risen modestly, moving from 8.58% to 8.68%.
- Future P/E ratio expectations have increased from 10.61x to 11.36x.
Disclaimer
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