Gentherm cut to Hold at Argus on more challenging near-term outlook

As previously reported, Argus downgraded Gentherm to Hold from Buy with no price target. The company is well positioned in its key markets, which should drive revenue growth and margin expansion over time as light vehicle sales increase and supply-chain issues diminish, the analyst tells investors in a research note. The firm adds however that in the near-term, the outlook for Gentherm is more challenging due in part to manufacturing disruptions resulting from the now-resolved UAW strike. The stock is trading at a “fair valuation” of 17-times the firm’s 2024 EPS estimate, which is inside the 12- to 27-times five-year range, Argus states.