A Weaker Outlook For Gentherm Drives Argus To Downgrade

Citing increased competitive risks and weaker growth prospects, Argus downgraded shares of Gentherm Inc THRM to Hold from Buy.

Argus highlighted the stalling in the company's earnings growth in recent quarters due to the dilutive acquisition of environmental testing chambers maker Cincinnati Sub-Zero. The firm also noted a rival snared away one of its key customers, namely Lear Corporation LEA.

Argus said it no longer expects Gentherm shares to trade at current levels, given the weaker growth outlook. The firm also noted that the stock price has fallen sharply over last year and earnings estimates have also been cut.

At time of writing, the shares of Gentherm were down over 3 percent at $30.81.