Garrett Motion (GTX) is back in focus after securing its first serial production award in China for its oil free, foil bearing-based centrifugal compressor in Cling’s next generation electric bus and truck HVAC systems.
See our latest analysis for Garrett Motion.
The Cling compressor award lands after a busy few months for Garrett Motion, including a recent dividend declaration, share repurchases and full year 2025 results. The stock’s 12.86% 1 month share price return and very large 1 year total shareholder return of 113.99% suggest momentum has been building despite a small 1 day dip.
If this kind of EV related news has your attention, it might be a good time to see what else is moving in the sector through our list of 34 AI infrastructure stocks.
With the shares up sharply over 1 year and trading close to the US$22.20 analyst target, along with a value score of 5 and a large estimated intrinsic discount, is there still a buying opportunity here, or is the market already pricing in future growth?
Most Popular Narrative: 4% Undervalued
Garrett Motion’s most followed valuation narrative places fair value at $21.20 per share, a touch above the latest $20.36 close, which frames the current pricing debate.
Ongoing innovation and proof-of-concept awards in zero-emission technologies (E-Powertrain, E-Cooling, and fuel cell compressors) and expansion in industrial/non-automotive end markets are positioning Garrett to capture higher-margin business opportunities and diversified growth, supporting both revenue and future margin expansion.
Curious what sits behind that fair value? The narrative leans heavily on steady revenue, firmer margins, and a future profit multiple that undercuts many auto component peers. The full story links those pieces into one valuation roadmap.
Result: Fair Value of $21.20 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the story could change quickly if demand for gasoline and diesel turbos weakens faster than expected, or if margin pressure from product mix and global costs persists.
Find out about the key risks to this Garrett Motion narrative.
Next Steps
If this situation feels finely balanced between opportunity and risk, it makes sense to look at the full picture now and form your own view. This is especially relevant given the mix of concern and optimism already highlighted in our 4 key rewards and 2 important warning signs.
Looking for more investment ideas?
If you are weighing your next move, this is the moment to widen your watchlist and compare Garrett Motion with other focused opportunities on the platform.
- Target potential mispricings by scanning our list of 47 high quality undervalued stocks that pair quality fundamentals with prices that may not fully reflect them yet.
- Prioritise resilience by checking out 77 resilient stocks with low risk scores, highlighting companies with risk profiles that might suit investors seeking fewer surprises.
- Spot underfollowed opportunities early through our screener containing 24 high quality undiscovered gems, where smaller names with solid underpinnings could be flying under the radar.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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