Added to YB: 2024-07-16
Pitch date: 2024-07-13
GTX [bullish]
Garrett Motion Inc.
+177.24%
current return
Author Info
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Company Info
Garrett Motion Inc. designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies to original equipment manufacturers and independent aftermarket distributors in the mobility and industrial fields.
Market Cap
$5.2B
Pitch Price
$8.82
Price Target
14.00 (-43%)
Dividend
1.14%
EV/EBITDA
9.58
P/E
15.40
EV/Sales
1.72
Sector
Automobile Components
Category
turnaround
Garrett Motion and Credit Ratings
GTX: Turbo maker post-bankruptcy, still cheap at 6x P/E. BB- credit rating vs BWA's BBB+. Debt/EBITDA 3.5x, aim for 2x. 2024 EBITDA $575M, need $500-800M debt cut for upgrade. $800M notes issued to repay debt. Potential 50%+ upside if P/E reaches 12x. Interest savings could add 20% more. Risk: BEV transition.
Read full article (5 min)