Lear (LEA) Rises Guidance for 2025—Is the Stock Still Undervalued After Latest Earnings Update?

Lear (NYSE:LEA) lifted its outlook for 2025, now expecting higher revenue and operating earnings for the year. This updated guidance was issued as the company released new quarterly results to the market.

See our latest analysis for Lear.

Lear’s upbeat outlook arrives at an interesting moment for the stock. After a solid 30-day share price return of 11.7% and a year-to-date gain of 16.5%, momentum appears to be building again. This is despite last quarter’s softer earnings and a modest 1-year total shareholder return of 15.1%.

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Given Lear’s improved guidance, rebound in momentum, and the stock still trading at a discount to analyst price targets, investors may wonder if the market is underestimating future growth or if the upside is already reflected in the current price.

Most Popular Narrative: 8.1% Undervalued

With Lear's fair value estimated at $117.58 based on the most widely followed narrative, the latest close of $108.10 implies the stock trades at a notable discount. This gap sets the stage for deeper discussion around the key drivers behind this valuation.

“Lear's recent wins of modular, electronics-rich seating and wire programs with major global EV automakers (including nearly $1 billion in E-Systems awards YTD and high-interest in ComfortFlex/ComfortMax seats) position the company to benefit from growing demand for advanced vehicle electrification and connectivity. This sets up higher revenue per vehicle and supports long-term top-line growth and margin improvement.”

Read the complete narrative.

Want to know which bold growth levers analysts are betting on? The secret sauce behind this fair value lies in a combination of faster profit expansion, sector-leading efficiency gains, and a skeptical future valuation multiple. Ready to find out what could make Lear’s price jump?

Result: Fair Value of $117.58 (UNDERVALUED)

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

However, challenges such as declining volumes on key customer platforms and persistent margin pressures could still derail Lear’s improved growth outlook in the quarters ahead.

Find out about the key risks to this Lear narrative.

Build Your Own Lear Narrative

If you see things differently, or want to dig into the numbers on your own terms, you can craft your own perspective in just a few minutes with Do it your way.

A great starting point for your Lear research is our analysis highlighting 3 key rewards and 3 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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