10:45 AM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month target at $130, based on a 2025 P/E of 7.5x and a justified discount to the stock's 10-year mean forward P/E of 12.9x. We maintain our adjusted EPS estimates of $15.00 for 2024 and $17.25 for 2025. LEA posted Q1 adjusted EPS of $3.18 vs. $2.78 (+14%), ahead of the $3.07 consensus. Stronger-than-expected margins drove the beat, as revenue rose 3% to $5.99B ($10M below consensus) and core operating margin expanded 20 bps to 4.7%. LEA maintained prior 2024 net sales and adjusted EBITDA guidance. Shares are currently trading down ~5%, as LEA's modest share repurchase level (only $30M in Q1, down from $175M in Q4) and unchanged earnings guidance (despite the bottom-line beat) is giving investors pause. We maintain our Hold rating, as we see better growth opportunities across the auto supplier space. One of the problems LEA faces is that its primary growth segment (E-Systems) has lower margins (3.6% in Q1) than its much larger Seating business (a 5.4% margin in Q1).