GTX Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Garrett Motion Inc (GTX) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock has strong analyst ratings with significant upside potential, positive sentiment from recent news, and a favorable options sentiment. Despite some recent financial performance challenges, the company's growth prospects in the turbocharger market remain robust, supported by extended timelines for internal combustion engine phase-outs. The lack of major trading trends or congress activity does not detract from the stock's long-term potential.
The MACD is negative and expanding (-0.179), indicating a bearish momentum. RSI is neutral at 34.329, and moving averages are converging, suggesting no clear trend. The stock is trading near its support level (S1: 18.769), which may present a buying opportunity. The pre-market price is $18.86, slightly below the pivot level of $19.564.
Analysts have issued strong buy ratings with price targets ranging from $21 to $23, indicating 36% upside potential.
The extension of internal combustion engine phase-outs beyond 2035 reduces a major overhang on the stock.
Garrett's turbocharger business is expected to grow with high visibility into market share gains.
Recent financial performance shows a decline in net income (-16% YoY) and EPS (-10.64% YoY), which may concern some investors.
Gross margin dropped to 23.57%, down 7.46% YoY, indicating potential cost pressures.
In Q4 2025, revenue increased by 5.57% YoY to $891 million, showing growth. However, net income dropped by 16% YoY to $84 million, and EPS fell by 10.64% YoY to $0.42. Gross margin also declined to 23.57%, down 7.46% YoY, reflecting some operational challenges.
Analysts are bullish on GTX. JPMorgan initiated coverage with an Overweight rating and a $23 price target, citing reduced headwinds from slower battery electric vehicle growth. Stifel raised its price target to $21, highlighting pricing power and expected volume growth in 2026. BWS Financial raised its target to $22, noting the extension of internal combustion engine phase-outs as a positive development.
