JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Garrett Motion (NASDAQ:GTX) Stock

Key Points

• JPMorgan raised Garrett Motion’s price target from $33 to $37 while maintaining an “overweight” rating, implying 26.26% upside from the prior close.
• Analyst sentiment remains positive, with five Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $38.60.
• Garrett Motion beat quarterly earnings expectations, reporting $0.53 EPS versus the $0.46 consensus, while revenue rose 6.9% year over year to $976 million.

Garrett Motion (NASDAQ:GTX - Get Free Report) had its price target increased by investment analysts at JPMorgan Chase & Co. from $33.00 to $37.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 26.26% from the company's previous close.

GTX has been the subject of several other reports. BWS Financial reaffirmed a "buy" rating and set a $42.00 target price on shares of Garrett Motion in a report on Thursday, July 30th. Stifel Nicolaus lifted their price target on Garrett Motion from $29.00 to $36.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Freedom Capital cut Garrett Motion from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 4th. Deutsche Bank Aktiengesellschaft upgraded Garrett Motion from a "hold" rating to a "buy" rating and boosted their price objective for the stock from $33.00 to $36.00 in a report on Thursday, July 30th. Finally, Royal Bank Of Canada set a $42.00 price objective on shares of Garrett Motion in a research note on Thursday, May 21st. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Garrett Motion presently has a consensus rating of "Moderate Buy" and a consensus price target of $38.60.

Garrett Motion Stock Down 1.8%

Garrett Motion stock traded down $0.55 during mid-day trading on Monday, hitting $29.30. The company's stock had a trading volume of 1,391,741 shares, compared to its average volume of 2,575,032. The stock has a market capitalization of $5.47 billion, a P/E ratio of 16.11, a P/E/G ratio of 0.79 and a beta of 0.82. Garrett Motion has a twelve month low of $12.26 and a twelve month high of $36.25. The stock's fifty day moving average price is $32.39 and its two-hundred day moving average price is $25.34.

Garrett Motion (NASDAQ:GTX - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.53 EPS for the quarter, beating analysts' consensus estimates of $0.46 by $0.07. The company had revenue of $976.00 million during the quarter. Garrett Motion had a negative return on equity of 46.50% and a net margin of 9.51%.Garrett Motion's revenue was up 6.9% on a year-over-year basis. During the same quarter last year, the company posted $0.42 EPS. Equities analysts expect that Garrett Motion will post 1.86 earnings per share for the current year.

Insider Activity at Garrett Motion

In related news, Director Daniel A. Ninivaggi sold 17,178 shares of the business's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $31.22, for a total transaction of $536,297.16. Following the transaction, the director directly owned 124,885 shares of the company's stock, valued at approximately $3,898,909.70. The trade was a 12.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Sean Deason sold 110,000 shares of the company's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $31.93, for a total transaction of $3,512,300.00. Following the completion of the transaction, the chief financial officer owned 261,909 shares in the company, valued at approximately $8,362,754.37. This represents a 29.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 213,834 shares of company stock valued at $6,918,710. 1.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Garrett Motion

A number of hedge funds have recently modified their holdings of GTX. BlackRock Inc. acquired a new position in Garrett Motion in the 2nd quarter worth about $461,794,000. Fuller & Thaler Asset Management Inc. acquired a new stake in shares of Garrett Motion during the 4th quarter valued at about $180,383,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Garrett Motion by 170.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 5,139,439 shares of the company's stock valued at $89,580,000 after buying an additional 3,241,952 shares during the last quarter. Merewether Investment Management LP bought a new stake in shares of Garrett Motion in the 3rd quarter valued at approximately $40,590,000. Finally, BlueCrest Capital Management Ltd bought a new stake in shares of Garrett Motion in the 3rd quarter valued at approximately $36,539,000. 86.27% of the stock is owned by institutional investors and hedge funds.

Garrett Motion Company Profile

Garrett Motion Inc is a technology leader specializing in the design, development and manufacture of turbocharging systems and related technologies for the global automotive industry. Its product portfolio includes conventional exhaust gas turbochargers, variable-geometry turbochargers, electric and e-boost turbochargers, as well as electronic actuators, sensors and thermal management systems. The company’s solutions are engineered to improve engine efficiency, reduce emissions and support automakers’ efforts to meet evolving regulatory standards for fuel economy and air quality.

Garrett Motion traces its roots to the founding of AiResearch by Cliff Garrett in 1936, a pioneer in aircraft and automotive turbocharging technologies.

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