Argus analyst David Coleman downgraded Gentherm to Hold after its recent "disappointing" Q2 results and a cut in its FY19 sales outlook driven by the "challenging" macro and auto industry environment. The analyst believes that the current 21.4-times expected FY19 earnings multiple - near the midpoint of its 11.7-33.0-times historical average and above the median peers' 15.2-times - is a "fair valuation" for Gentherm.

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.