Analyst upgrades Gentex following strong 3Q report

HARTFORD, Conn. (AP) — Gentex Corp. shares rose to a new 52-week high Monday after an analyst upgraded the maker of rearview mirrors and fire protection products following a strong third-quarter report.

Wells Fargo analyst Richard M. Kwas raised his rating to "Outperform" from "Market Perform" and said the value of Gentex's shares is attractive "given earnings growth prospects."

Last Wednesday, Gentex reported its third-quarter net income jumped 58 percent, to $23.9 million, or 17 cents per share, on higher sales of its headlight and camera systems. Production volumes improved as automakers began rebuilding inventories, Gentex said.

Kwas said he expects Gentex's production to rebound next year and in 2011, and the company should increase its market presence of its SmartBeam and rear camera display mirrors.

He raised his 2009 earnings estimate to 44 cents per share from 34 cents per share and increased his 2010 estimate to 75 cents per share from 54 cents.

Kwas also raised his 2011 estimate to $1 per share from 74 cents per share.

Shares rose 43 cents, or 2.6 percent, to $16.92 in afternoon trading. They earlier traded at $17.83, eclipsing a 52-week high of $17.74 set last Wednesday.