A Fresh Look at Garrett Motion (GTX) Valuation Following Bold Product Development Tech Upgrade

Garrett Motion (NasdaqGS:GTX) is stepping up its digital transformation by expanding its partnership with PTC. The company will roll out Codebeamer+ and Windchill+ to streamline engineering workflows and lay the groundwork for broader AI adoption.

See our latest analysis for Garrett Motion.

Garrett Motion’s rollout of Codebeamer+ and Windchill+ comes on the heels of a remarkable year. The share price is up 80% year-to-date, and its total shareholder return over the past 12 months has reached 95%. Momentum has certainly been building as investors respond to both the company’s growth initiatives and improving fundamentals, making Garrett’s digital pivot part of a much broader story of transformation and value creation.

If Garrett’s ambitious tech upgrades have you thinking bigger, this is the perfect time to broaden your horizons and discover See the full list for free.

With the stock now trading just below analysts’ price targets, investors have to ask whether Garrett Motion’s impressive run leaves more room to climb or if the market has already accounted for its next chapter of growth.

Most Popular Narrative: 15% Undervalued

With Garrett Motion closing at $16.08 and the narrative fair value at $19.00, the story points to a notable gap between today’s price and what consensus expects if bullish trends hold steady.

Momentum in newly launched large turbo products for genset and marine applications, particularly serving the rapidly expanding data center backup power market, provides access to a new, fast-growing revenue stream that can contribute hundreds of millions in annual sales over the next several years.

Read the complete narrative.

Curious why analysts see upside from here? Their projections hinge on a subtle mix of sector innovation and a future profit multiple that calls for sustained execution. What kind of growth trajectory could justify this premium? Dive in to unpack the critical assumptions powering this valuation.

Result: Fair Value of $19.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent margin pressures and the company's reliance on internal combustion engine markets could quickly challenge analysts' upbeat growth assumptions if broader trends change.

Find out about the key risks to this Garrett Motion narrative.

Build Your Own Garrett Motion Narrative

If you have a different perspective or want to dive into the details yourself, you can craft your own narrative in just a few minutes. Do it your way

A great starting point for your Garrett Motion research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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