UPDATE: Barrington Research Upgrades Gentherm Inc On Continued Solid Outlook

In a report published Thursday, Barrington Research analyst Gary Prestopino upgraded the rating on Gentherm Inc THRM from Market Perform to Outperform, and reiterated the $50.00 price target. In the report, Barrington Research noted, “We believe that the overreaction in Gentherm's stock price to Ford's reduction in its full‐year profitability forecast is unwarranted and has created an attractive entry point in Gentherm's shares. Ford's reduction in its outlook does not stem from volume issues in North America; rather it is due to U.S. recalls, sluggishness in Europe as well as declines in Russia and South America. The overwhelming majority of Gentherm's business with Ford is in North America with some immaterial seat heater bushiness in Europe. As a result, we postulate that Ford's scaling back of its profitability forecast should not have an impact on Gentherm's profitability in 2014 and 2015.” Gentherm Inc closed on Wednesday at $39.87.