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    Garrett Motion (GTX) Is Down 8.2% After Oversold Slide Meets Upgraded Earnings Views Has The Bull Case Changed?

    Simply Wall St·08/22/2026 19:17:37
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    • Recently, Garrett Motion became technically oversold as heavy selling eased, while Wall Street analysts moved to revise their earnings estimates higher.
    • This pairing of an exhausted sell-off with improving earnings expectations has refocused attention on how closely sentiment is tracking the company’s fundamentals.
    • Next, we’ll examine how this shift toward higher earnings estimates could influence Garrett Motion’s investment narrative around diversification and efficiency.

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    Garrett Motion Investment Narrative Recap

    To be a Garrett Motion shareholder, you need to believe the company can use its turbocharger base to fund a broader shift toward electrified, industrial and energy efficiency technologies, while managing high debt and exposure to global auto cycles. The recent oversold reading and higher earnings estimates support the near term earnings catalyst but do not change the key risk that its ICE centric portfolio may be slow to transition as EV adoption advances.

    The most relevant recent announcement here is Garrett’s decision on 29 July 2026 to raise full year 2026 net sales guidance to US$3.7 billion to US$3.9 billion and net income guidance to US$330 million to US$360 million. This upward revision provides context for analysts lifting earnings estimates, and ties directly into the core catalyst that Garrett can improve efficiency and diversify revenue while still converting sales into profit and cash.

    But against this backdrop, investors should still be aware of how dependent the story remains on gasoline and diesel turbo demand and what happens if that shifts faster than...

    Read the full narrative on Garrett Motion (it's free!)

    Garrett Motion's narrative projects $4.2 billion revenue and $437.5 million earnings by 2029. This requires 4.0% yearly revenue growth and about a $94.5 million earnings increase from $343.0 million today.

    Uncover how Garrett Motion's forecasts yield a $35.67 fair value, a 34% upside to its current price.

    Exploring Other Perspectives

    GTX 1-Year Stock Price Chart
    GTX 1-Year Stock Price Chart

    Some of the lowest analysts on Garrett Motion were already cautious, assuming revenue of about US$4.3 billion and earnings of roughly US$464.8 million by 2029, and your view on the latest oversold signal and estimate upgrades might differ sharply if you worry that slower adoption of oil free compressors could hold back those targets.

    Explore 4 other fair value estimates on Garrett Motion - why the stock might be worth just $35.67!

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    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.