Gentex initiated with a Neutral at UBS

UBS analyst Joseph Spak initiated coverage of Gentex with a Neutral rating and $34 price target. The firm’s analysis shows that penetration of auto-dimming mirrors in key markets like the U.S. has plateaued and that vehicle affordability may be a headwind, the analyst tells investors in a research note. Vehicle affordability issues may also limit uptake of higher featured mirrors, the firm says, adding that it believes the market is currently pricing in EPS levels closer to the firm’s view.