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Investing.com - Jefferies has raised the price target on Standard Motor Products, Inc. (NYSE:SMP) to $45.00 from $39.00 while maintaining a Buy rating. The stock, currently trading near its 52-week high of $36.86, has shown remarkable momentum with a 20% return over the past week, according to InvestingPro data.
The price target increase follows Standard Motor Products’ second-quarter adjusted earnings per share of $1.29, which exceeded consensus estimates of $0.95. The company maintains strong fundamentals with a P/E ratio of 12.02 and has consistently paid dividends for 16 consecutive years.
Jefferies noted that continued outperformance from Nissens, which grew by mid-to-high single digits, and strong Temperature Control growth of 5.5% despite challenging year-over-year comparisons, offset cyclically pressured Engine Systems, which declined by 8.3%.
Management has raised its 2025 growth guidance to low-20 percent from mid-teens percent while maintaining adjusted EBITDA margin expectations of 10-11%.
Jefferies expects pricing to drive healthy second-half top-line growth to offset tariff costs, with potential further tailwinds from additional rate cuts.
In other recent news, Standard Motor Products reported impressive financial results for the second quarter of 2025. The company achieved an earnings per share (EPS) of $1.29, significantly surpassing the analyst forecast of $0.95 by 35.85%. Additionally, revenue reached $493.85 million, exceeding expectations of $450.21 million and marking a 9.69% surprise. These results reflect a strong performance for the company and have positively impacted investor sentiment. The earnings beat and revenue growth highlight Standard Motor Products’ effective strategic initiatives. Investors and analysts are taking note of these developments, which demonstrate the company’s ability to outperform market forecasts.
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