Is Garrett Motion Inc. (GTX) A Good Stock To Buy Now?

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GTX is simply a historically boring turbocharger shaper that the marketplace inactive prices arsenic a mid-cycle automotive supplier, but beneath the aboveground it is progressively levered to information halfway powerfulness and cooling infrastructure done its oil-free foil bearing and high-speed turbomachinery platform. That aforesaid exertion stack is present monetized done 2 underappreciated channels: MEG turbochargers utilized successful large-bore backup generators and oil-free centrifugal compressors for HVAC systems, some straight tied to information halfway buildouts.

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MEG already generated implicit $100M successful 2025, with absorption explicitly linking request to information halfway exigency powerfulness and guiding double-digit maturation successful 2026, portion ASPs connected ample gensets are materially higher than automotive turbos, creating a step-change successful contented per unit. In parallel, GTX’s exclusive concern with Trane Technologies channels its oil-free compressor level into commercialized cooling systems, with a 2027 accumulation ramp and vulnerability to information centers, artillery storage, and concern cooling, representing a imaginable >$180M gross watercourse by decade-end.

These 2 vectors beryllium alongside optional substance compartment compressor applications that reenforce the aforesaid oil-free air-bearing moat and broaden semipermanent non-automotive exposure. Despite this, statement inactive assumes ~4% maturation and assigns a compressed multiple, leaving GTX trading astatine ~11.4x guardant net and an ~11% escaped currency travel output supported by a $250M buyback authorization and a 75% escaped currency travel instrumentality policy.

Peer Accelleron trades adjacent 26x connected akin turbomachinery exposure, highlighting the mispricing. Even assuming a blimpish rerating to 20x earnings, GTX screens toward a ~$34 per stock target, without requiring assertive maturation assumptions, with superior instrumentality subject and concern vulnerability providing meaningful downside support.

Previously, we covered a bullish thesis connected Garrett Motion Inc. (GTX) by Maksim successful May 2025, which highlighted borderline expansion, tariff pass-through strength, and increasing vulnerability to hybrid and REEV powertrains. GTX’s banal terms has appreciated by astir 191.38% since our coverage. Gabriel Cortes shares a akin presumption but emphasizes connected information center-driven turbomachinery demand, MEG generators, and oil-free HVAC compressor optionality.