Lear Corp. (LEA)
From Cabot Wealth Advisory 1/2/14 Sign up for free Cabot Wealth Advisory
Lear Corp. (LEA), founded in 1917 and headquartered in Southfield, Michigan, is a leading global supplier of automotive seating systems, electrical distribution systems and electronics. The seating division manufactures, assembles and supplies vehicle seating systems for automobiles and light trucks, which are fully assembled and ready for installation. The electrical and electronic division manufactures, assembles and supplies electrical and electronic systems and components for vehicles.
Lear’s purchase of Guilford Mills in May 2012 is producing better than expected sales and earnings results. Guilford makes vehicle seat fabrics and is providing Lear with unique and popular seating systems.
I expect sales to rise 7% and EPS to climb 21% to 7.00 in 2014. Earnings could climb faster if management’s operating efficiency program increases profit margins.
At 14.0 times current EPS and with a dividend yield of 0.8%, LEA’s shares are undervalued. I expect LEA to reach my Min Sell Price of 110.73 within one year.
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|Lear Corp. (LEA)
21557 Telegraph Road
Southfield, Michigan 48033
|Index Membership: N/A
Sector: Consumer Goods
Industry: Auto Parts
Full Time Employees: 113,400