Latest Zero-Emission Offerings Spark Bullish Views on Garrett Motion (GTX)

Garrett Motion (NASDAQ:GTX) is one of the best Auto Parts stocks according to Hedge Funds.

As of the close of play on January 29, sentiment remains highly bullish around Garrett Motion (NASDAQ:GTX). The stock had received coverage from 3 analysts, all of whom assigned Buy ratings. With a median 1-year price target of $22, it offers more than 20% upside potential from the prevailing level.

On December 17, Ryan Brinkman from JPMorgan initiated his coverage on Garrett Motion (NASDAQ:GTX), assigning an Overweight rating to the stock. He forecasted a target price of $23, which implies a 26% upside potential.

Brinkman attributed his stance to potential tailwinds from the company’s latest zero-emission vehicle offerings, along with a lower risk profile for the company’s internal combustion engine (ICE) business. He also acknowledged the company’s impressive free cash conversion ability and best-in-class leverage position. Another critical factor backing such an optimistic outlook is the company’s end-markets that appear less cyclical relative to other auto parts suppliers.

Garrett Motion (NASDAQ:GTX) develops and sells turbocharging, electric boosting, and air & fluid compression technologies. It primarily serves commercial vehicle OEMs and aftermarket distributors, aiming to improve powertrain efficiency and reduce emissions. It is also involved in the development of technologies for zero-emission mobility and industrial space.

While we acknowledge the potential of GTX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.