Update shared on 19 Nov 2025
Analysts have increased Gentex's price target, with recent updates bringing the target up from $28 to as high as $32. This change is mainly due to robust global auto production and resilient market demand forecasts.
Analyst Commentary
Recent updates from major firms have resulted in Gentex's price target being raised, reflecting shifts in analyst perspectives based on industry trends and company performance.
Bullish Takeaways
- Bullish analysts are raising price targets in response to stronger-than-expected global light vehicle production. This indicates confidence in Gentex's growth prospects.
- Favorable trends in currencies and commodities are viewed as supportive of margin expansion and financial performance.
- Year-to-date auto sales and analysis of leading market indicators suggest better-than-anticipated demand for vehicles, which supports positive sales outlooks for suppliers like Gentex.
- Industry pricing actions remain relatively benign even amid tariffs. This reduces risk and supports a stable operating environment for Gentex.
Bearish Takeaways
- Although bullish analysts are raising targets, they continue to maintain Neutral ratings, reflecting measured optimism and some lingering concerns over valuation or execution risks.
- There is caution around the U.S. battery electric vehicle mix, with some models reducing assumptions for vehicle electrification. This could moderate future growth expectations.
- The analyst community remains vigilant about potential impacts from more aggressive pricing strategies among rental companies and increased imports affecting related sectors. This underscores the need for continued operational discipline at Gentex.
What's in the News
- The Defense Logistics Agency extended Gentex's Advanced Combat Helmet Generation II production contract, valued up to $38.4 million, through October 2026 to continue supplying advanced ballistic helmets to the U.S. Army. (Client Announcements)
- Gentex showcased new automotive technologies at the SEMA show, including the launch of a slim carbon fiber automatic-dimming rearview mirror and two custom car unveils with Ringbrothers and Classic Car Studio. (Product-Related Announcements)
- Gentex was selected by the Czech Ministry of Defence to deliver next-generation integrated ballistic helmet systems and AMP Communication Headsets to Czech Armed Forces as part of a contract worth over CZK 1 billion, expected to be fulfilled by October 2026. (Client Announcements)
- The company issued production guidance estimating 19.85 million total light vehicles for Q4 2025. Annual production estimates are 76.09 million for 2025 and 74.84 million for 2026. (Corporate Guidance, New/Confirmed)
- Gentex advanced its partnership with Anduril Industries to develop EagleEye, an AI-enabled, helmet-integrated system for mission command and situational awareness for military personnel. (Client Announcements)
Valuation Changes
- The Fair Value estimate remains unchanged at $30.06 per share.
- The Discount Rate has increased slightly from 8.10% to 8.19%.
- The Revenue Growth projection is stable at approximately 7.80%.
- The Net Profit Margin has risen marginally from 18.12% to 18.12%.
- The future P/E ratio has decreased modestly from 13.56x to 13.45x.
Disclaimer
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