Roth Capital Gives a Hold Rating to Gentherm

By Austin Angelo

Roth Capital analyst Matt Koranda assigned a Hold rating to Gentherm (NASDAQ: THRM) yesterday and set a price target of $33. The company’s shares opened today at $36.75.

Koranda said:

“We met THRM management during our 3rd annual ROTH Detroit Bus Tour. Key takeaways: (1) no changes to expectations on THRM’s initial BTM ramp with two key programs starting 2018/2019; (2) incoming CEO will likely focus on new product development across automotive and non-automotive markets; and (3) in the medium to long term THRM expects to grow its CCS products in the aviation market where it sees a potentially high margin revenue stream in first/business class cabins in commercial airlines. We believe THRM’s initial battery thermal management (BTM) ramp is proceeding to plan, with one next generation program launching in Q4’17 and the next program following in mid-2018. The first program is anticipated to generate ~$25mn in revenue at a full run rate while the second program should drive an incremental ~$15-20mn.”

According to TipRanks.com, Koranda is a 4-star analyst with an average return of 8.5% and a 60.6% success rate. Koranda covers the Industrial Goods sector, focusing on stocks such as Cooper-Standard Holdings, Pioneer Power Solutions, and Columbus Mckinnon Corp.

Gentherm has an analyst consensus of Moderate Buy, with a price target consensus of $33.

Gentherm’s market cap is currently $1.35B and has a P/E ratio of 16.83. The company has a book value ratio of 2.5355.

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Gentherm, Inc. engages in the design, development, manufacture, and marketing of heating, cooling, and ventilating devices. It operates through the following business segments: Automotive, Industrial, and Reconciling Items.