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    A Look at Lear’s Valuation Following Upgraded 2025 Earnings and Revenue Guidance

    Simply Wall St·10/31/2025 19:35:55
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    Investors are keeping a close eye on Lear (LEA) after the company raised its full-year 2025 earnings and revenue guidance. This comes even as third-quarter net income and earnings per share came in lower than a year ago.

    See our latest analysis for Lear.

    Lear’s raised outlook has brought renewed optimism, with the stock posting an 11.24% share price gain over the past 90 days and a total shareholder return of 11.57% for the year. While performance in recent years has lagged, momentum appears to be returning as the company signals confidence in its future growth plans.

    If you’re curious to see which other auto industry names are making moves, explore the latest opportunities with our comprehensive See the full list for free.

    With Lear’s shares still trading at a discount to analyst price targets and improved guidance now on the table, the key question is whether the stock is undervalued or if the market has already priced in this renewed optimism.

    Most Popular Narrative: 10.7% Undervalued

    The most widely followed narrative pegs Lear’s fair value at $115.92, a healthy premium to the last close price of $103.52. This gap reflects a cautious but optimistic take on the company’s transformative partnerships and refreshed guidance.

    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 year to date 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.

    Curious about what’s driving this valuation? The most crucial variable is a set of aggressive predictions around Lear’s future earnings and key profit metrics. The narrative only reveals a piece of the story. The real intrigue is in the bold assumptions beneath the surface, ones that could redefine the company’s standing in the auto sector. Want to see what makes analysts believe in this potential turnaround? Read on to discover the pivotal expectations powering this fair value.

    Result: Fair Value of $115.92 (UNDERVALUED)

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

    However, ongoing challenges such as automaker pricing pressure and delays in new vehicle programs could quickly undermine these optimistic valuation forecasts.

    Find out about the key risks to this Lear narrative.

    Build Your Own Lear Narrative

    If you have your own take on Lear's outlook or want to put the latest data to the test, building a personalized narrative is quick and insightful. The process takes just a few minutes. 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.