
Stoneridge (SRI) Stock Forecast & Price Target
Stoneridge (SRI) Analyst Ratings
Bulls say
Stoneridge Inc. reported Q4/24 sales of $149.4 million in its Electronics segment, marking a 1.8% increase from Q4/23, primarily attributed to the successful ramp-up of key programs such as MirrorEye and the Smart 2 Tachograph, despite some declines in specific commercial vehicle markets. The company anticipates strong revenue growth from the MirrorEye program in 2025, with projections indicating an approximate 75% increase to around $120 million, spurred by new truck model rollouts and improving take rates. Additionally, Stoneridge expects to enhance its gross margin to about 22.25% in 2025, reflecting ongoing improvements in material costs and manufacturing performance, which further supports a positive financial outlook.
Bears say
Stoneridge Inc. is facing a challenging financial outlook, highlighted by a significant decline in adjusted operating margins, which dropped to 3.6% in Q4/24, a decrease of 390 basis points year-over-year, due to reduced customer reimbursements and rising selling, general, and administrative (SG&A) costs. Additionally, projections for Q1/25 indicate that revenue is expected to fall slightly below Q4/24 levels, driven by anticipated declines in Control Devices sales, which already saw a 16.3% decrease to $63.2 million in Q4/24 attributed to lower production volumes in the North American passenger vehicle market and reduced demand in China. The company's overall performance in recent quarters, marked by increased operating losses and lower sales leverage, further exacerbates concerns regarding its future profitability.
This aggregate rating is based on analysts' research of Stoneridge and is not a guaranteed prediction by Public.com or investment advice.
Stoneridge (SRI) Analyst Forecast & Price Prediction
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