UPDATE: Goldman Sachs Downgrades Standard Motors to Sell, Maintains Target at $17

Goldman Sachs lowers its rating on Standard Motor Products, Inc.

to Sell from Neutral with an 8% downside to an unchanged 6-month price target of $17 as share valuation will be difficult to sustain. According to Goldman Sachs, “While the company has performed well operationally, we believe the 22% rise in the share price since it reported 3Q11 results on November 1 has driven the valuation premium to levels that will be difficult to sustain. We expect the replacement parts market to see slower growth in 2012 on a slower rate of vehicle aging and mix headwinds – these underpin an 11% 2011-2013E EBITDA CAGR vs. 13% for our supplier coverage.” SMP closed Monday's trading at $18.50, up 0.16 percent.