Is Garrett Motion (GTX) Still Undervalued After Its 94% One-Year Share Price Surge?

Garrett Motion (GTX) has quietly turned into a strong performer, with the stock up about 94% over the past year and roughly 27% in the past 3 months, catching more investors’ attention.

See our latest analysis for Garrett Motion.

That steep year to date share price return near 94% suggests investors are steadily repricing Garrett Motion for its improving fundamentals. The 3 year total shareholder return of about 139% shows this momentum has been building for a while.

If this kind of move has you wondering what else is gaining traction in autos, it is a good moment to explore auto manufacturers.

With earnings still growing and the share price trading at a discount to analyst targets and intrinsic value estimates, is Garrett Motion still undervalued, or is the market already pricing in its next leg of growth?

Most Popular Narrative: 13.6% Undervalued

With Garrett Motion last closing at $17.27 against a narrative fair value of $20.00, the story points to more upside if assumptions hold.

The analysts have a consensus price target of $15.0 for Garrett Motion based on their expectations of its future earnings growth, profit margins and other risk factors.

Read the complete narrative.

Curious how modest revenue expansion, slightly higher margins, and a richer earnings multiple can still justify a meaningfully higher value than today’s price? The full narrative unpacks the math step by step.

Result: Fair Value of $20 (UNDERVALUED)

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

However, this upside case could be challenged if EV adoption outpaces Garrett’s transition beyond ICE turbos, or if margin pressure from weaker aftermarket demand persists.

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

Build Your Own Garrett Motion Narrative

If you see the story differently or want to test your own assumptions, you can build a custom view in just a few minutes: Do it your way.

A great starting point for your Garrett Motion research is our analysis highlighting 5 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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