Goldman Sachs analyst Mark Delaney maintained a Hold rating on Gentex today and set a price target of $28.00.
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Mark Delaney has given his Hold rating due to a combination of factors that present both opportunities and challenges for Gentex. The company reported strong second-quarter results, with revenue and non-GAAP EPS exceeding both Goldman Sachs’ and the Street’s expectations. Additionally, Gentex showed significant improvement in its gross margins, which were driven by cost reductions and operational efficiencies. This positions the company well to achieve its long-term margin targets.
However, Delaney maintains a Neutral stance on the stock due to several concerns. Growth prospects for some of Gentex’s products, such as outside dimmable mirrors, may be constrained as OEMs look to mitigate tariff costs and policy challenges. Furthermore, Gentex’s revenue from China is expected to remain below historical levels due to tariffs and increased competition. Lastly, the current valuation of the stock is considered full, limiting the potential for significant upside.
In another report released today, Robert W. Baird also maintained a Hold rating on the stock with a $30.00 price target.