On Nov 05, major Wall Street analysts update their ratings for $Magna International (MGA.US)$, with price targets ranging from $45 to $52.
Barclays analyst Dan Levy maintains with a hold rating, and maintains the target price at $50.
UBS analyst Joseph Spak maintains with a hold rating, and adjusts the target price from $44 to $45.
Wells Fargo analyst Colin Langan maintains with a hold rating, and adjusts the target price from $44 to $46.
Scotiabank analyst Jonathan Goldman maintains with a hold rating, and adjusts the target price from $50 to $52.
Furthermore, according to the comprehensive report, the opinions of $Magna International (MGA.US)$'s main analysts recently are as follows:
Sentiment was initially low leading into the quarter, but the reported results aligned with expectations and the declaration of a buyback authorization helped mitigate some of the negative sentiment. Analysts are adopting a wait-and-see approach until greater clarity emerges, however, they acknowledge these initiatives as a positive progression.
Following Magna's third-quarter earnings shortfall, observations have been made that the company has lowered its forward guidance for FY24 to a figure that remains above the consensus. Despite broader economic challenges, the company has initiated a share repurchase program, underpinned by an improved free cash flow position. This move comes at a time when other suppliers are adjusting their forecasts to below consensus and signaling concerns about future market fluctuations. Although there may be a shift towards positive investor sentiment, caution is advised due to potential macroeconomic difficulties expected in FY25, particularly with original equipment manufacturers (OEMs) scaling back production in the U.S. and Europe.
Magna experienced a 6% increase following a Q3 EBIT beat, and announced significant share buybacks despite a leverage ratio of 1.9-times, which is above the targeted 1-1.5-times range. Although the full year EBIT guidance was reduced by approximately 4%, it still suggests a substantial improvement quarter-over-quarter. The shift towards core operations is regarded positively, yet achieving long-term targets may present challenges.
Here are the latest investment ratings and price targets for $Magna International (MGA.US)$ from 4 analysts:
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
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.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
