On Wednesday, Gentherm (NASDAQ:THRM) Incorporated (NASDAQ:THRM) shares saw its price target increased by Roth/MKM from the previous $65.00 to $68.00, while the firm maintained a Buy rating on the stock.
The company's first-quarter performance featured revenue that met expectations and better-than-anticipated gross margins and operating expenses. This led to adjusted earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) that surpassed the consensus and Roth/MKM's own estimates.
Gentherm's recent bookings have shown a strong year-over-year increase of 10%, with an 80% win rate, as reported by the company's management. This performance is expected to alleviate concerns among investors regarding competition, particularly since a key customer, Lear (NYSE:LEA) Corporation, has been making efforts to penetrate Gentherm's core thermal market without significant success.
The analyst's commentary underscores the solid results of the first quarter and the robust bookings as key factors in maintaining the Buy rating and raising the price target. The analyst noted that Gentherm's competitive position remains strong despite the challenges posed by competitors in the market since late 2023.
Roth/MKM has kept its estimates for Gentherm steady for the years 2024 and 2025, indicating a stable outlook for the company. The raised price target reflects confidence in Gentherm's ongoing performance and its ability to maintain a competitive edge in its market.
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