Stoneridge climbs after price target increase

Stoneridge climbs after analyst raises price target on maker of engineered electrical products

• On 11:05 am EDT, Wednesday October 7, 2009

NEW YORK (AP) -- Shares of Stoneridge Inc. rose Wednesday after an analyst raised his price target on the maker of engineered electrical and electronic products by 50 percent.

KeyBanc analyst Brett D. Hoselton raised his share price target to $12 from $8 because of his "increased confidence in the longer term outlook for North American commercial vehicle production."

Talks with industry sources and a research group found a consensus that North American commercial vehicle production bottomed in the second quarter of this year and will improve through the first half of next year.

Hoselton also is optimistic about the sector's prospects beyond next year due to "a combination of an economic recovery as well as higher (truck) replacement demand."

The analyst reiterated his "Buy" rating on shares of the Warren, Ohio, company.

In late morning trading, the stock climbed 24 cents, or 3 percent, to $8.25. Earlier in the session shares reached $8.49, a 6 percent gain over Tuesday's closing price.

Over the past 12 months, the stock has ranged from $1.41 to $9.41.