UPDATE: Craig-Hallum Upgrades Gentherm Incorporated (THRM) to Buy

July 30, 2021 7:14 AM EDT
Get Alerts THRM Hot Sheet
Price: $82.50 --0%

Rating Summary:
    6 Buy, 3 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 6 | New: 25
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(Updated - July 30, 2021 8:03 AM EDT)

Craig-Hallum analyst Ryan Sigdahl upgraded Gentherm Incorporated (NASDAQ: THRM) from Hold to Buy, PT $110.00.

The analyst comments "THRM is executing well in a challenging production environment, including significant industry outperformance and continued execution on its ‘fit-for- growth’ cost optimization (OpEx down 10% vs Q2-19). Given the strong award bookings over the past few years, combined with much needed ramp in vehicle production, we think THRM has good visibility to double-digit revenue growth. Moreover, THRM announced its first ClimateSense commercial award with a global OEM. This is the most important new product for THRM and helps solve a major problem for EVs (50% less power consumption, 50+ mile range extension). This product is proprietary, has meaningfully higher content (2-4x), and we think has the potential to be a $1B+ annual product in the future. As for the stock, we like the risk/reward given $4/share of net cash and growing ($100M/year FCF), modest valuation (11x EV/EBITDA vs comps at 14x), strong demand and production tailwinds, improving fundamentals and potentially a re-rating on greater visibility to it being a major EV beneficiary."

For an analyst ratings summary and ratings history on Gentherm Incorporated click here. For more ratings news on Gentherm Incorporated click here.

Shares of Gentherm Incorporated closed at $81.48 yesterday.


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