Lear (NYSE:LEA) Stock Price Target Lowered at Royal Bank Of Canada

Key Points

• Royal Bank of Canada lowered Lear’s price target from $139 to $135 while maintaining a “sector perform” rating, implying roughly 9.1% upside from the current price.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $143.25 after several firms recently reduced ratings or targets.
• Lear’s latest quarterly results exceeded EPS expectations, and the company authorized a $1.5 billion share-repurchase program; however, concerns about auto production and its revenue outlook remain key risks.

Lear (NYSE:LEA - Get Free Report) had its price objective dropped by research analysts at Royal Bank Of Canada from $139.00 to $135.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has a "sector perform" rating on the auto parts company's stock. Royal Bank Of Canada's target price would indicate a potential upside of 9.10% from the stock's current price.

A number of other analysts also recently issued reports on the company. Weiss Ratings downgraded Lear from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 9th. JPMorgan Chase & Co. cut Lear from an "overweight" rating to a "neutral" rating and decreased their target price for the stock from $175.00 to $150.00 in a research note on Tuesday, September 15th. Barclays lowered their price target on Lear from $155.00 to $145.00 and set an "equal weight" rating for the company in a report on Friday, October 9th. Deutsche Bank Aktiengesellschaft set a $131.00 price objective on shares of Lear in a report on Monday, August 3rd. Finally, Wall Street Zen lowered shares of Lear from a "buy" rating to a "hold" rating in a research note on Sunday, October 25th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $143.25.

Lear Trading Up 4.5%

LEA traded up $5.30 during trading hours on Monday, reaching $123.75. The company's stock had a trading volume of 111,890 shares, compared to its average volume of 600,043. Lear has a fifty-two week low of $99.00 and a fifty-two week high of $150.33. The stock has a market cap of $6.10 billion, a PE ratio of 10.78, a P/E/G ratio of 0.67 and a beta of 1.28. The business's 50-day moving average is $122.17 and its 200-day moving average is $128.37. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.18 and a quick ratio of 0.92.

Lear (NYSE:LEA - Get Free Report) last issued its quarterly earnings results on Friday, October 30th. The auto parts company reported $3.71 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.32 by $0.39. Lear had a net margin of 2.46% and a return on equity of 14.92%. The company had revenue of $5.77 billion for the quarter, compared to analyst estimates of $5.81 billion. During the same period in the prior year, the firm earned $2.79 earnings per share. The business's revenue for the quarter was up 1.6% compared to the same quarter last year. As a group, equities research analysts predict that Lear will post 14.88 earnings per share for the current fiscal year.

Lear declared that its Board of Directors has authorized a stock repurchase plan on Thursday, September 24th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the auto parts company to purchase up to 25.7% of its stock through open market purchases. Share repurchase plans are often an indication that the company's leadership believes its shares are undervalued.

Insider Transactions at Lear

In related news, Director Conrad L. Mallett, Jr. sold 1,646 shares of the company's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $121.35, for a total value of $199,742.10. Following the completion of the transaction, the director directly owned 37 shares in the company, valued at approximately $4,489.95. This represents a 97.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 1.02% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of LEA. Dimensional Fund Advisors LP lifted its holdings in Lear by 3.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,943,480 shares of the auto parts company's stock worth $356,380,000 after buying an additional 107,678 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in Lear in the second quarter valued at about $65,397,000. Sei Investments Co. grew its stake in Lear by 28.8% during the 1st quarter. Sei Investments Co. now owns 176,084 shares of the auto parts company's stock valued at $21,320,000 after purchasing an additional 39,422 shares in the last quarter. Quantinno Capital Management LP grew its stake in Lear by 14.4% during the 1st quarter. Quantinno Capital Management LP now owns 151,156 shares of the auto parts company's stock valued at $18,302,000 after purchasing an additional 18,990 shares in the last quarter. Finally, Diamond Hill Capital Management LLC Investment Advisor purchased a new stake in Lear during the 2nd quarter worth approximately $17,423,000. 97.04% of the stock is owned by institutional investors and hedge funds.

Lear News Summary

Here are the key news stories impacting Lear this week:

• Positive Sentiment: Lear reported year-over-year growth in third-quarter revenue, core operating earnings, net income and earnings per share. Adjusted EPS reportedly increased 33%, helped by cost controls and operational improvements despite lower global auto production. Lear Corporation third-quarter 2026 results
• Positive Sentiment: The company outlined plans to repurchase up to $1.5 billion of stock through 2029. Buybacks could support per-share earnings and signal management’s view that Lear shares are undervalued. Lear buyback and Orion automation plans
• Positive Sentiment: Lear is expanding its Orion automation initiative, which management expects to reduce conversion costs by approximately 10% to 15%. If achieved, the program could improve margins and strengthen the company’s competitive position over time. Lear Orion automation initiative
• Neutral Sentiment: Lear’s earnings beat and improved profitability are encouraging, but management’s outlook remains the key issue for investors because the business is closely tied to vehicle production and automaker demand. Lear third-quarter profit and sales
• Negative Sentiment: The stock has decreased after Lear’s revenue guidance disappointed investors. The weaker sales outlook overshadowed the earnings beat and raised concerns about softening auto production, customer demand and potential pressure on future growth. Lear shares and revenue outlook

Lear Company Profile

Lear Corporation is a global automotive technology company that designs and manufactures products used in passenger vehicles and commercial vehicles. Its operations are organized primarily around two areas: seating and e-systems. Lear supplies complete vehicle seating systems, including seats, structures, mechanisms, foam, covers and related components, as well as electrical distribution systems and other technologies that support vehicle power management and connectivity.

The company serves automotive manufacturers and their vehicle programs in major markets across North America, Europe, Asia and other regions.

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