Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. has demonstrated small yet positive growth in its Electronics segment, as evidenced by Q4/24 sales reaching $149.4 million, a 1.8% increase compared to Q4/23, driven largely by the ramp-up of the MirrorEye and Smart 2 Tachograph programs. The company anticipates substantial revenue growth from the MirrorEye system, projecting approximately $54 million in additional revenue in 2024, which suggests a robust demand trajectory. Furthermore, Stoneridge's focus on improving gross margin through cost initiatives indicates a proactive approach to enhancing profitability, with a forecasted gross margin midpoint of 22.25% for 2025, reflecting a 135-basis point improvement from 2024.

Stoneridge Inc. has experienced a significant decline in its adjusted operating margins, with a notable drop of 390 basis points year-over-year to 3.6% in Q4/24, largely attributed to reduced customer reimbursements and increased sales, general, and administrative expenses. The company's Control Devices segment reported a sharp 16.3% decrease in sales to $63.2 million compared to Q4/23, driven by lower production volumes in the North American passenger vehicle market and a reduction in sales from end-of-life programs and in China. Furthermore, Stoneridge anticipates that Q1/25 revenue will fall slightly below Q4/24 levels, as SMART 2 Tachograph sales decline from a prior record, suggesting an ongoing weakness in demand within key markets.