UPDATE 1-Baird cuts Johnson Controls, Gentex and Harman

June 18 (Reuters) - Robert W. Baird downgraded three auto supplier companies and said it remained cautious on the sector in the near term, citing a possible 20 percent to 30 percent downside to stocks across the group as expectations for a potential recovery are lowered.

"We believe demand is likely to take meaningfully longer to recover in the current cycle and do not expect a return to trend demand until 2013," the brokerage said.

Baird downgraded Johnson Controls Inc (JCI.N), the No. 3 North American auto parts supplier, and Gentex Corp (GNTX.O) to "neutral" from "outperform," and said it saw limited near-term upside for the stocks as they were trading near its price targets of $21 and $13, respectively.

However, the brokerage said it views both companies as among the "highest quality" in the group and that it would buy the stocks at 15 percent to 20 percent lower prices.

Baird downgraded Harman International Industries Inc (HAR.N) to "underperform" from "neutral," citing concerns about the company's revenue growth beyond current program launches, and the size and timing of near-term cost-cutting actions. It cut its price target on the stock to $15 from $19.

Baird raised its price target on shares of Tenneco Inc (TEN.N) by $6 to $10 to reflect the company's reduced -- though still elevated -- financial risk.

Shares of Jonson Controls closed at $20.96, while those of Harman closed at $19.25 Wednesday on the New York Stock Exchange. Shares of Gentex closed at $12.64 on Nasdaq. (Reporting by Mary Meyase in Bangalore; Editing by Anne Pallivathuckal)