Gentherm downgraded to Neutral from Outperform at Baird

Baird analyst Luke Junk downgraded Gentherm to Neutral from Outperform with a price target of $65, down from $73. The analyst now believes near-term negatives outweigh positives and recommends moving to the sidelines. The firm’s key concern is Gentherm’s “recent stop and start” margin trends. It also sees ClimateSense as a less pronounced near-term catalyst. Until more consistent margin expansion can be demonstrated, “sideways trading and subdued valuation are likely to persist,” the analyst tells investors in a research note.