Craig-Hallum analyst Steve Dyer lowered his price target for Gentherm to $48 from $50, while reiterating a Buy rating on the shares. Despite a challenging market environment, the analyst believes the company continues to execute well on its Fit-for-Growth initiatives and nicely outperformed global auto production. Weaker than expected global auto production was the primary driver of the weaker results/guide, although he points out that revenue missed estimates by less than 2%, CCS grew year over year for the first time in six quarters and Gentherm outperformed the industry by 600 bps. Overall, Dyer continues to like the multi-year opportunity.

JPMorgan lowered the firm's price target on Gentherm to $60 from $63 and keeps an Underweight rating on the shares. To reflect the "modestly softer than expected" trend in global light vehicle production during the quarter, the firm lowered Q1 estimates for auto supplier EBITDA by an average of 1% and earnings by 3%, resulting in new estimates that are on average 2% below the Street on EBITDA and 3% lower on earnings. However, the firm increased full year estimates for most suppliers, saying the outlook for full year production has improved since the time of Q4 earnings, and because of the material decline in automotive commodity prices during Q1, which should primarily benefit suppliers beginning in Q2.