RBC Capital analyst Tom Narayan has adjusted his outlook on Magna International (MGA, Financial), lowering the stock's price target from $51 to $32. This adjustment is part of a broader analysis ahead of anticipated first-quarter results from automakers. Narayan maintains a Sector Perform rating on Magna shares.
The analyst suggests that the upcoming quarter may witness a boost from increased purchasing activity in March, as businesses act in anticipation of forthcoming tariffs. Although substantial discussion on the impact of these tariffs is not expected during the Q1 earnings announcements, guidance within the sector might experience reductions, despite consensus estimates already tending toward the lower spectrum of target ranges.
Amidst prevailing macroeconomic uncertainties, RBC Capital expresses a preference for original equipment manufacturers (OEMs) over suppliers like Magna. However, the firm notes that investors predicting an outcome without tariff impositions could potentially achieve significant gains by investing broadly across the sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Magna International Inc (MGA, Financial) is $45.06 with a high estimate of $54.00 and a low estimate of $31.00. The average target implies an upside of 40.26% from the current price of $32.13. More detailed estimate data can be found on the Magna International Inc (MGA) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Magna International Inc's (MGA, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Magna International Inc (MGA, Financial) in one year is $52.97, suggesting a upside of 64.86% from the current price of $32.13. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Magna International Inc (MGA) Summary page.
