Lear (NYSE:LEA) EPS, Cash Flow Adjusted on Volumes, Guidance, Valuation

Citing 2011 guidance, valuation multiples and light vehicle production volumes, CRT capital adjusted their EPS and cash flow estimates on Lear (NYSE:LEA).

CRT says, "We are revising our earnings and cash flow estimates to reflect, among other things: (1) our most recent light vehicle production volumes, (2) management’s 2011 guidance, and (3) slightly higher valuation multiples. As a result of the aforementioned revisions, we are increasing our price target on the Company’s Common Shares to $126/share. Our revised price target is approximately 20% above the most recent closing price ($104.99)...We believe that the strength of LEA’s credit profile is already largely reflected in the trading levels of its 7.875% Senior Notes due ’18 and 8.125% Senior Notes due ’20 (collectively, the “Senior Notes”), which recently traded at dollar prices of 108 and 110, respectively, to yield 6.0% and 6.2%, respectively. As a result, we are affirming our “Fair Value” rating on the Senior Notes."

CRT Capital maintains a "Buy" rating on Lear (LEA), which closed Monday at $107.12, up $2.13, or 2.03 percent. CRT raised their price target on Lear from $92 to $126.