(RTTNews) - Credit Suisse has initiated coverage of Lear Corp. (LEA: News ) with an ''Outperform'' rating and a price target of $81. Analyst Christopher Ceraso noted that Lear has a strong competitive position in seating, and emergence from bankruptcy has given the company a clean balance sheet, which according to the brokerage, ''sets it apart from many of its auto supplier peers.''

Lear continued to get new business, in spite of the bankruptcy, the brokerage noted, adding that the company holds a 3-year backlog of $1.4 billion.

The analyst said his profit forecasts for 2010-2012 show significant upside potential, compared to the company's plan-of-reorganization estimates. ''We would highlight our forecast for 2011 EBITDA of $916 million vs. LEA's estimate of $703 million.''
The brokerage said Lear has attractive valuation and there is about 20% upside potential from the current price.

Click here to receive FREE breaking news email alerts for Lear Corporation and others in your portfolio

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com