Update shared on27 Aug 2025
Fair value Increased 1.85%Gentex’s consensus price target was modestly raised to $30.56 as analysts highlighted gross margin improvements, industry stability, and resilient automotive demand, supporting stronger near-term outlook.
Analyst Commentary
- Improvement in Gentex’s gross margin, driven by purchase cost reductions and operational efficiencies, positions the company to achieve its long-term gross margin target of 35%-36%.
- Solid quarterly results, particularly regarding margin expansion, have encouraged some analysts to raise estimates and targets, even while maintaining Neutral ratings.
- Bullish analysts are less cautious on the vehicle technology and mobility sector, expecting auto suppliers like Gentex to generally beat expectations in Q2, with reasonable visibility into Q3.
- Industry fundamentals appear firmer, prompting upward adjustments in price targets and earnings estimates for Gentex.
- More measured auto tariff levels versus initial expectations are leading to increased U.S. auto sales forecasts for 2025 and 2026, though some moderation is still anticipated in the second half after pre-buying and pricing adjustments.
What's in the News
- Gentex raised its 2025 consolidated revenue guidance to $2.44 billion – $2.61 billion from earlier $2.15 billion – $2.32 billion.
- The company completed the repurchase of 24.35 million shares (10.58% outstanding) for $674.29 million since the August 2021 buyback announcement.
- Gentex launched its next-generation Ops-Core FAST SF Helmet System with RAILINK Power & Data ARC Rails, expanding accessory capability and securing new development partnerships for the RAILINK ecosystem.
- The PLACE smart home safety system was launched, featuring multi-function smoke/carbon monoxide alarms with room-specific models, industry-first low-frequency sounder technology, and retail availability.
- Gentex introduced the LX9 Liner System for ground combat helmets, with 18,000 units secured for delivery to the US Army.
Valuation Changes
Summary of Valuation Changes for Gentex
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $30.00 to $30.56.
- The Future P/E for Gentex remained effectively unchanged, moving only marginally from 13.94x to 14.21x.
- The Discount Rate for Gentex remained effectively unchanged, moving only marginally from 7.69% to 7.72%.
Disclaimer
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