Hamed Khorsand, an analyst from BWS Financial, maintained the Buy rating on Garrett Motion (GTX – Research Report). The associated price target remains the same with $12.00.
Hamed Khorsand has given his Buy rating due to a combination of factors that highlight Garrett Motion’s financial health and future potential. The company has demonstrated a strong ability to generate free cash flow, even amidst challenges in the latter half of 2024. This capability is further supported by GTX’s effective management of its manufacturing processes, which has allowed it to maintain an adjusted EBITDA margin above 16 percent.
Looking ahead, GTX is forecasting free cash flow between $300 million and $390 million for 2025, building on the $317 million achieved in 2024. Khorsand believes that reaching $360 million in free cash flow is attainable, which would provide GTX with the flexibility to pay dividends, repurchase shares, and reduce its debt. This ongoing generation of free cash flow and reduction of debt is expected to enhance the company’s equity valuation, justifying the Buy rating.