Stoneridge (SRI) Stock Forecast & Price Target

Stoneridge Inc. demonstrates a positive outlook driven by substantial sales growth across its segments in Q2/25, with the Control Devices segment reporting a sequential increase of 1.9% to $71.2 million, fueled by heightened production volumes in the North American passenger vehicle market. Additionally, the Electronics segment achieved sales of $149.6 million, reflecting a robust sequential increase of 6.4% primarily due to a favorable foreign exchange translation and a significant 21% growth in MirrorEye sales. Furthermore, Stoneridge Brazil also contributed positively, with a 6.0% increase in sales to $15.3 million, attributed to favorable FX effects and heightened aftermarket product sales, indicating overall operational resilience and growth potential.

Stoneridge Inc. has experienced a significant decline in adjusted operating income, dropping by 39% to $4.2 million in Q2/25, primarily due to increased material costs and rising SG&A expenses, despite a reduction in quality-related costs. Furthermore, the company faces a bleak outlook as IHS forecasts a 17.5% reduction in North American commercial vehicle production volumes for 2025, contributing to an additional anticipated decline of 2.2% in its weighted average end markets. The Electronics segment has already shown negative performance, with a year-over-year sales decrease of 2.6% and a concerning drop in adjusted operating margin by 490 basis points to 2.8%.