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Assessing Garrett Motion (GTX) Valuation After MEG Turbocharger Debut With Weichai

Simply Wall St·02/19/2026 13:14:48
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Why Garrett Motion’s MEG Turbocharger Launch With Weichai Matters

Garrett Motion (GTX) has put its new MEG turbocharger platform into first commercial use with Weichai’s next generation large bore engines, targeting marine propulsion and power generation markets.

This first deployment takes Garrett’s turbo technology into larger frame applications that are engineered for demanding operating conditions, including marine vessels, high output power plants, and backup gensets for critical infrastructure such as data centers.

See our latest analysis for Garrett Motion.

Garrett Motion’s recent MEG launch lands at a time when the share price has climbed 11.42% over the past month and 31.65% over the past quarter, while the 1 year total shareholder return of 125.51% and 3 year total shareholder return of 164.64% point to strong momentum that investors are watching closely.

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With Garrett trading at US$20.59, sitting close to an analyst target of US$21.20 yet showing a 49% intrinsic discount and solid recent returns, is there still a genuine buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 3% Undervalued

Garrett Motion’s most followed narrative pegs fair value at $21.20, slightly above the last close of $20.59, which raises some pointed questions about what is priced in.

Ongoing innovation and proof-of-concept awards in zero-emission technologies (E-Powertrain, E-Cooling, and fuel cell compressors) and expansion in industrial/non-automotive end markets are positioning Garrett to capture higher-margin business opportunities and diversified growth, supporting both revenue and future margin expansion.

Read the complete narrative.

Curious what underpins that fair value call? The narrative leans on steady revenue progress, firmer margins, and a future earnings multiple that stays below current sector levels. The detailed earnings and cash flow path behind that view is where things get interesting.

Result: Fair Value of $21.20 (UNDERVALUED)

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

Still, the story can change quickly if electric vehicle adoption undercuts internal combustion turbo demand faster than expected or if margin pressure from product mix persists.

Find out about the key risks to this Garrett Motion narrative.

Next Steps

With mixed sentiment running through this story, you may want to review the full picture for yourself and quickly decide where you stand using our view of 4 key rewards and 2 important warning signs.

Looking for more investment ideas?

If Garrett has sharpened your focus, do not stop here. The same screener that surfaced this story can quickly widen your field of high quality possibilities.

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.