Evercore downgrades Lear to In Line on pushout of margin thesis

Evercore ISI analyst Chris McNally downgraded Lear (LEA) to In Line from Outperform with a price target of $145, down from $150. The analyst would await a more attractive entry point below $130 per share "given clear pushout" of the E-system margin thesis. Lear’s E-Systems margins peaked at 14%-15% in 2027 and "it has been a frustrating escalator ever since," the analyst tells investors in a research note. The firm prefers shares of Aptiv (APTV) or Autoliv (ALV) to Lear based on near-term 2023 upside and longer term recovery potential.