2023-07-11 10:09:58 ET
Gentherm ( NASDAQ: THRM ) on Tuesday was downgraded to Neutral from a previous investment rating of Overweight by analysts at financial-services firm Baird. They said the maker of heating and cooling equipment for cars and hospital patients faces possibly slimmer profit margins.
“Until more consistent margin expansion can be demonstrated (still needed to achieve our now slightly below consensus 2024 estimates), we believe sideways trading and subdued valuation are likely to persist,” Luke L. Junk, analyst at Baird, said in a July 11 report.
Baird has a price target of $65 a share for Gentherm ( THRM ), based on an enterprise value-to-EBITDA multiple of 9.5 times estimates for 2024.
Gentherm’s ( THRM ) slipped 1.7% to $54.96 a share by 10:04 a.m. ET. Before today, the stock had fallen 7.7% in 12 months, contrasting with a 15% gain for the Standard & Poor’s 400 midcap stock index ( SP400 ).
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Gentherm downgraded to Neutral at Baird on profit-margin concerns