Bank of America has adjusted its price target for Magna International (MGA, Financial), reducing it to $42 from a previous $48, while maintaining a Neutral rating on the stock. This adjustment comes despite expectations of better-than-anticipated first-quarter performance in production and sales figures.
The analyst notes that initial signs from Q1 indicate that production volumes and sales are shaping up to exceed previous projections. This positive development is expected to lead to financial results that surpass earlier forecasts for Magna International.
However, looming uncertainty surrounding tariffs continues to pose significant challenges for the company. These concerns are creating an environment where businesses, including Magna, might need to reevaluate or even hold back their financial guidance. The analyst highlights that this uncertainty has led them to cut valuation multiples by as much as 1.0x across their coverage, reflecting the cautious stance necessitated by ongoing tariff discussions.
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 $44.48 with a high estimate of $54.00 and a low estimate of $31.00. The average target implies an upside of 37.91% from the current price of $32.25. 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 $55.31, suggesting a upside of 71.5% from the current price of $32.25. 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.
