Stoneridge Looking Solid to $21

Stoneridge (SRI - Snapshot Report) is aggressively cutting costs and benefiting from the growth of the commercial vehicle market. Increased use of electronics in vehicles is also benefiting the company. We rate the shares a Buy with a target of $21.00.

Stoneridge, Inc. designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, medium and heavy-duty truck as well as agricultural vehicle markets. The company's primary products include power distribution components and systems, electrical switches and sensors, and other modular assemblies.

Currently, shares of Stoneridge, Inc. are trading at 22.3x our 2008 EPS estimate of $0.79. For the full year 2008, the company expects net income per diluted share to be in the range of $0.75 to $0.85, an increase from the previous year s earnings of $0.71 per share. This anticipated increase includes approximately $9 million to $13 million in restructuring related expenses after the expected benefit from a facility sale. Stoneridge expects its new product sales and ongoing cost reduction initiatives to more than offset these restructuring expenses as well as the expected volume declines in certain markets.

Read the full analyst report on SRI