THRM – Management is confident in their strategy and execution, and low market expectations suggest longer-term upside remains warranted

• Gentherm Incorporated (THRM:USA)currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 15.9x Uniform P/E. At these levels, markets are pricing in bearish expectations for the firm, but given management’s confidence in their new strategy to divest non-core segments to focus on the real value drivers, long-term equity upside is warranted
• Specifically, management is confident in their focus on delivering quality products to customers, evidenced by their recent General Motors Supplier Quality Excellence Award. Additionally, they are confident in their new strategy to focus more on the primary value drivers of the business by divesting non-core segments, particularly their CSZ Industrial chamber and Global Power Technology businesses. While market expectations are bearish, a renewed focus on the core value drivers of the business suggest that outperformance and equity upside are warranted