Gentex set up favorably for second half, says Jefferies » 06:4508/0708/07/20
After having hosted…
After having hosted meetings with Gentex CFO Kevin Nash, Jefferies analyst David Kelley said he came away with the view that the company is set up favorably relative to peers to benefit from restocking in the second half given its outsized exposure to North America and Europe. In addition, the company's commentary on initiatives suggest an improved cost structure and the potential for 2021 upside in a sales recovery, which Kelley views as likely. He keeps a Buy rating and $32 price target on Gentex shares.
|Over a week ago|
Gentex upgraded to Overweight at KeyBanc on 'significant' earnings power » 07:1707/2707/27/20
As previously reported,…
As previously reported, KeyBanc analyst James Picariello upgraded Gentex to Overweight from Sector Weight with a $33 price target. The analyst exits the Q2 with much greater confidence in the company's outperformance runway and ability to now fully leverage future growth based on its latest cost-out actions. Picariello is impressed by its guided second half of 2020 margins, which should enable 2021 to reach about 27% EBIT profitability, with upside from there. The analyst also sees ample runway for auto-dimming mirror penetration globally and for advanced feature electronics led by FDM to drive content mix higher. He believes buybacks remain a top priority.
Gentex upgraded to Overweight from Sector Weight at KeyBanc » 04:4407/2707/27/20
KeyBanc analyst James…
KeyBanc analyst James Picariello upgraded Gentex to Overweight from Sector Weight with a $33 price target.
Gentex sees 2H20 revenue $865M-$915M » 08:0507/2407/24/20
The Company's current forecast for light vehicle production for the second half and full year 2020 is based on the mid-July 2020 IHS Markit forecast for light vehicle production in North America, Europe, Japan/Korea and China. Based on this information, light vehicle production for the second half and full year 2020 in the Company's primary regions are expected to decline approximately 7% for the second half of 2020 and 20% for the full year 2020, when compared to the same periods in 2019. Based on this light vehicle production forecast and the structural changes that the Company has made over the last several months, the Company is providing guidance estimates for the second half of 2020, as opposed to only updating full year guidance. Given the magnitude of changes this year, the Company believes this guidance is a more accurate representation of the new cost structure and financial performance not only for the remainder of 2020, but should also provide better visibility heading into 2021. The Company's current estimate is that net sales for the second half of 2020 will be between $865M and $915M. Based on uncertainty regarding the COVID-19 pandemic, overall economic conditions globally, vehicle production trends, and consumer demand for vehicles, the Company is withholding revenue guidance for 2021 until better data becomes available. Despite the fact that the Company is withholding guidance for 2021, the Company remains confident in its ability to continue to outperform its primary underlying markets.
Gentex reports Q2 adj. EPS 2c, consensus 12c » 08:0307/2407/24/20
Reports Q2 revenue…
Reports Q2 revenue $229.9M, consensus $258.6M. The impact of COVID-19, government enacted shutdowns in certain countries and states, and the resultant economic impact led to the most severe change in demand in a very short period of time that Gentex has ever experienced. In fact, our forecast in early March for the second quarter of 2020 was estimating a 6% growth rate for the Company," said President and CEO Steve Downing. "A deeper dive into the global vehicle production environment provides compelling information about what happened in the quarter. For instance, while the China market expanded by 9% in the second quarter, our historical revenue from China has been less than 10% of sales, so this provided very little help to offset the losses in our primary markets. The Company's primary markets include North America, Europe, Japan and Korea and together these regions were down approximately 59% for the second quarter of 2020. While these production numbers are incredibly sobering, the silver lining is that we are continuing to find ways to significantly outperform our primary underlying markets."
|Over a month ago|
Gentex transferred with a Buy rating at B. Riley FBR » 08:3206/3006/30/20
B. Riley FBR analyst Josh…
B. Riley FBR analyst Josh Nichols took over coverage of Gentex with a Buy rating and $32 price target. While COVID-19 disruptions have created some near-term headwinds with limited visibility, Gentex is in an "enviable position" relative to most suppliers with over 90% market share in the automatic dimming rearview mirrors market with increasing penetration rates across vehicles, Nichols tells investors in a research note.
Gentex price target raised to $28 from $25 at JPMorgan » 09:1106/1906/19/20
JPMorgan analyst Ryan…
JPMorgan analyst Ryan Brinkman raised the firm's price target on Gentex to $28 from $25 and keeps a Neutral rating on the shares. Evidence has been mounting for weeks that U.S. new vehicle sales and used vehicle pricing are recovering in May and June nearly as fast they plunged in March and April, Brinkman tells investors in a research note. The analyst now forecasts 2020 U.S. light vehicle car sales of 14.5M, up from 13.5M previously.
Gentex upgraded to Outperform at Baird » 08:1506/0106/01/20
As reported previously,…
As reported previously, Baird analyst David Leiker upgraded Gentex to Outperform from Neutral with a price target of $32, up from $27. The analyst said it is the best business model among the suppliers-dominant market, highest ROIC in the group, and the best free cash flow and secular drivers.
Gentex upgraded to Outperform from Neutral at Baird » 05:1806/0106/01/20
Baird analyst David…
Baird analyst David Leiker upgraded Gentex to Outperform from Neutral with a price target of $32, up from $27.
|Over a quarter ago|
Gentex to hold Annual Meeting virtually » 08:0605/0805/08/20
Gentex announced that due…
Gentex announced that due to the coronavirus pandemic and in the interest of the health and well-being of its shareholders, team members, and communities, its 2020 Annual Meeting of Shareholders now will be held in a virtual-only meeting format. As a result, shareholders will not be able to attend the Annual Meeting in person. The previously announced date and time of the Annual Meeting, Thursday, May 21, 2020, at 4:30 p.m. E.T. has not changed.