Stoneridge skids as analysts say stock price is fair

Shares of automotive components maker Stoneridge Inc. fell Monday, as analysts said the stock has reached a fair price after reporting strong first-quarter earnings and forecast.

Stoneridge reported its quarterly results Friday morning, surpassing analyst expectations for both profit and revenue. The Warren, Ohio, company said it expects to earn between 75 cents and 85 cents per share in 2008, while analysts polled by Thomson Financial were expecting 72 cents per share, on average.

The news sent Stoneridge stock climbing to its highest levels in nearly six years early in Friday trading, as it peaked at $18.74 early in the session. But the stock later gave up those gains and finished the day modestly lower.

That trend accelerated Monday, as shares dropped 65 cents, or 4.4 percent, to $14.09. Earlier in the day, shares fell as low as $12.74.

KeyBanc analyst Brett Hoselton downgraded the stock to "Hold" From "Buy." He said the move was based "entirely" on the stock price, which has surged 83 percent this year.

Baird analyst David Leiker agreed that improvements in Stoneridge's business are already included in the stock price. He maintained a price target of $12 per share.