Scotiabank analyst Jonathan Goldman maintains $Magna International (MGA.US)$ with a hold rating, and adjusts the target price from $50 to $52.
According to TipRanks data, the analyst has a success rate of 52.8% and a total average return of 10.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Magna International (MGA.US)$'s main analysts recently are as follows:
Prior to the quarterly report, sentiment was negative, but the in-line results alongside the announcement of the buyback authorization mitigated some of the pessimistic views. While remaining cautious and seeking greater visibility, it's acknowledged that these initiatives represent a positive move.
Magna's shares experienced an approximate 6% increase following a third-quarter EBIT beat. The company has also announced significant share repurchases despite having a leverage ratio of 1.9, which is above the targeted range of 1 to 1.5 times. While the full-year EBIT guidance was reduced by roughly 4%, it still implies a sequential increase of 80 basis points. The move towards focusing on core operations is viewed positively, but achieving long-term targets is expected to be challenging.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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