A Look at Garrett Motion (NasdaqGS:GTX) Valuation Following Major Digital Engineering Upgrade

Garrett Motion (NasdaqGS:GTX) is making waves by expanding its partnership with PTC and adopting advanced cloud-based engineering platforms to upgrade its product development tools. This move highlights Garrett’s commitment to digital transformation and smarter workflows across its global business.

See our latest analysis for Garrett Motion.

Building on the momentum from its expanding digital initiatives, Garrett Motion’s share price has soared 85.5% year-to-date, with a remarkable 1-year total shareholder return just shy of 100%. That strong upward trend comes even as the stock cooled a bit in recent weeks. This underscores how investors are recognizing not just operational upgrades, but also Garrett’s broader growth potential.

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With shares already delivering impressive gains this year and new digital investments underway, the big question now is whether Garrett Motion is still trading below its true value. Alternatively, the recent rally may mean the market has already priced in all that growth potential.

Most Popular Narrative: 13% Undervalued

Garrett Motion’s narrative fair value stands at $19, which is notably higher than the recent closing price of $16.53. This indicates analysts see notable upside potential, especially as the company pivots to electrification and implements new buybacks.

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.

The key driver behind this bullish outlook is a set of bold, forward projections about margins, earnings trajectory, and a valuation multiple that is well below the industry average. Want to see the blueprint that justifies this premium fair value? Uncover the deal-breaking assumptions behind analyst confidence and learn what makes this valuation so compelling.

Result: Fair Value of $19 (UNDERVALUED)

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

However, lingering dependence on combustion engine components and margin pressures from an unfavorable product mix could challenge Garrett Motion’s ability to sustain its current growth momentum.

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

Build Your Own Garrett Motion Narrative

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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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