Longbow Research Remains a Sell on Gentherm

By Austin Angelo

Longbow Research analyst Anthony Deem reiterated a Sell rating on Gentherm (NASDAQ: THRM) today and set a price target of $26. The company’s shares closed yesterday at $37.15.

Deem observed:

“We see an unfavorable risk/reward due to elevated expectations and 2018 guidance risk. Weak fundamentals should eventually offset excitement around the management change and BTM opportunity. Flat organic growth = $0.12 EPS risk vs. the mid-point of 3-5% 2018 guidance. Weak cash generation, market share risk, shrinking TAM and high U.S. tariff exposure leave us concerned across the board. As a result, we reiterate our UNDERPERFORM rating.”

According to TipRanks.com, Deem is a 2-star analyst with an average return of 4.7% and a 66.7% success rate. Deem covers the Industrial Goods sector, focusing on stocks such as Visteon Corp, Adient plc, and Aptiv PLC.

Gentherm has an analyst consensus of Hold, with a price target consensus of $34.50.

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The company has a one-year high of $40.80 and a one-year low of $29.50. Currently, Gentherm has an average volume of 197.7K.

Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock.

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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.