Analysts halve target price for truck parts supplier CVG

Noble Capital Markets has slashed its target price for shares of small cap Commercial Vehicle Group, a supplier of components and systems for trucks and electric vehicles. After the target price revision, Nobile maintained its “buy” recommendation. Meanwhile, it still has a positive long-term view on the company’s business, even though CVG’s financial performance has weakened amid sliding sales.

Noble values CVG at $4 per share, half the previous target price from in December 2024 but nearly double its current trading price. At the close yesterday, March 17, CVG shares changed hands at $1.56 per share. 

Since the beginning of 2025, CVG has lost 37% of its value, while over the last 12 months it is off nearly 75%. 

The revision comes after the company published its 2024 financial results, which showed revenue falling more than 13% to $723.36 million. Operating losses totaled $0.80 million, a stark contrast to the $39.80 million profit in 2023. CVG attributed this to declining sales and operational inefficiencies, citing weaker demand for construction and agricultural equipment, as well as trucks — its core markets.

To address these challenges, the company has taken “immediate and decisive actions, including the divestitures of nonstrategic assets and businesses,” according to CVG President and CEO James Ray, as cited in the earnings report. Noble estimates these measures could save the company around $15 million.

CVG guides for the revenue decline to halve, forecasting sales between $670 million and $710 million for 2025, implying a drop of 2% to 7% versus 2024. Noble analysts, however, are more conservative, projecting an 8% decline to $665 million. They note ongoing economic uncertainty and the difficulty of assessing the impact of U.S. trade tariffs, given that CVG operates factories in Morocco and Mexico.

Despite these short-term challenges, Noble remains upbeat on CVG’s future.

“We believe the company's long-term growth outlook remains favorable, and is positioning itself well with its business transformation to drive a more diversified, profitable business,” Noble stated. Noble maintained an “outperform” rating on the stock, equivalent to a “buy” recommendation.

According to MarketWatch, CVG has two analyst ratings, both “buys.” The average target price is $4.50 per share, implying upside of nearly 2.9 times the current share price.