Added to YB: 2023-12-11
Pitch date: 2023-12-09
GTX [bullish]
Garrett Motion Inc.
+237.06%
current return
Author Info
Special Situation Investing writes actionable investment write-ups and insights every Saturday. Sign up for the newsletter.
Company Info
Garrett Motion Inc. designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies to original equipment manufacturers and independent aftermarket distributors in the mobility and industrial fields.
Market Cap
$5.2B
Pitch Price
$7.83
Price Target
10.00 (-63%)
Dividend
1.15%
EV/EBITDA
9.56
P/E
15.37
EV/Sales
1.72
Sector
Automobile Components
Category
turnaround
Pulling Returns Forward With Options
GTX to cut debt, uplift credit rating by '24 end; could boost mkt cap by $1.1B via lower leverage & re-rating to 6x EBITDA. Sell calls to set exit above target price, collect premium (e.g. $0.15/sh for $9 calls, 73d expiry at $7.74). Limit upside only for good premium. Know thesis & timeline.
Read full article (7 min)