Gentex stock price target raised to $28 from $23 at UBS on margin upside

Published 28/07/2025, 15:44
Gentex stock price target raised to $28 from $23 at UBS on margin upside

Investing.com - UBS raised its price target on Gentex (NASDAQ:GNTX) to $28.00 from $23.00 on Monday, while maintaining a Neutral rating on the stock following the company’s recent performance. According to InvestingPro data, the stock has shown remarkable strength with an 18.44% gain over the past week, though analysis suggests it’s currently trading near Fair Value levels.

The price target increase comes after Gentex shares rallied approximately 16% compared to the S&P 500’s 0.4% gain, driven by gross margin upside in the company’s core business and a better-than-expected profitability profile from its VOXX operations.

UBS noted that mix issues, which had caused headwinds for Gentex in the recent past, appear to have somewhat stabilized, contributing to the improved outlook for the automotive electronics supplier.

The investment firm raised its 2025 and 2026 EPS estimates by 17% and 22% respectively, though it cautioned that these increases were largely due to previously too-pessimistic assumptions about VOXX in its forecast rather than fundamental improvements across the business.

UBS highlighted several potential concerns, including expected gross margin pressure in the second half of 2025 due to tariffs, risks from potential semiconductor tariffs, and the possibility that Gentex’s China business, representing approximately 4.5% of 2025 pro forma sales, could diminish over coming years.

In other recent news, Gentex Corporation reported its second-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.47, which was a 22.3% surprise over the forecasted $0.3843. Additionally, Gentex’s revenue reached $657.9 million, exceeding the anticipated $620.64 million. These results reflect a strong financial performance for the quarter. The positive earnings announcement followed by a significant increase in aftermarket trading highlights investor confidence. Analysts had projected lower figures, making Gentex’s performance noteworthy. These developments are part of the latest updates concerning the company.

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