$MGA

Research Alert: CFRA Maintains Hold Opinion On Shares Of Magna International Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target by $10 to $65, based on a 2027 P/E of 9.2x, which represents a justified discount to the stock's 10-year average forward P/E of 10.7x. We maintain our adjusted EPS estimates of USD6.70 for 2026 and USD7.10 for 2027. MG posted Q1 adjusted EPS of USD1.38 versus USD0.78 in Q1 2025 (+77% Y/Y), well ahead of the USD1.01 consensus. The beat was driven by much stronger-than-expected sales and margins: revenue rose 3.1% to USD10.38B (USD110M above consensus), and adjusted EBIT margin expanded 190 bps to 5.4% (120 bps above consensus). While the company did not raise full-year EPS guidance, we think a raise is now more likely given the magnitude of the beat. Given MG's broad product diversification across the automotive parts and equipment space, and its status as the largest North American auto supplier, we think the strength of its Q1 results has positive implications for the broader sub-industry, which has been struggling from a performance standpoint given macroeconomic concerns.

Magna International Price Target Trimmed to US$74.00 at CIBC

CIBC trimmed its price target on Magna International (MG.TO, MGA) by US$2.00 to US$74.00, and maintained its outperformer rating.Magna reported strong first-quarter results, providing further evidence of the company's s solid execution and disciplined approach, writes analyst Ty Collins. He links the negative share price reaction to market factors and some noise within the outlook, which was essentially unchanged, except for a $400 million (1%) reduction to FY sales.While macro risks remain (USMCA, Iran War) Collins believe Magna is well positioned to navigate potential impacts."We continue to see a clear pathway for margin improvement and strong cash flow generation, and view significant share buybacks as supportive."Price: $80.50, Change: $-2.18, Percent Change: -2.64%

Stocks Mostly Up Pre-Bell as Investors Await More Corporate Earnings

The benchmark US stock measures were mostly pointing higher before the open Friday as investors await the week's final round of corporate earnings and track ongoing Middle East tensions, with no apparent signs of progress toward a peace deal between Washington and Tehran.The S&P 500 rose 0.1% and the Dow Jones Industrial Average added 0.2% in premarket activity, while the Nasdaq was off 0.1%. The indexes finished Thursday's trading session in the green, with the S&P 500 and Nasdaq logging new closing highs.Oil giants Exxon Mobil (XOM) and Chevron (CVX) are scheduled to release their latest quarterly results before the bell, along with Colgate-Palmolive (CL), Estee Lauder (EL), Moderna (MRNA), Magna International (MGA) and Newell Brands (NWL).Shares of Apple (AAPL) advanced 2.8% pre-bell as the iPhone maker's fiscal second-quarter results topped market estimates. Reddit (RDDT) climbed 16% after the social media platform recorded better-than-expected first-quarter results and issued an upbeat revenue outlook for the ongoing three-month period at the midpoint. Nvidia (NVDA) rebounded 0.4% following a 4.6% decline at the close of Thursday.President Donald Trump told reporters at the White House on Thursday that the US will maintain its naval blockade of Iranian ports, according to Bloomberg News. "Their economy is crashing, the blockade is incredible," Trump reportedly said. "So we'll see how long they hold out."Iran's new supreme leader, Mojtaba Khamenei, reportedly said Thursday that Iran will defend its nuclear and missile capabilities.West Texas Intermediate crude oil inclined 0.3% to $105.43 a barrel before the opening bell, while Brent increased 0.9% to $111.37.US economic growth fell short of Wall Street's expectations in the first quarter as spending slowed amid inflationary pressures, government data showed Thursday.Separate official data showed that inflation, as measured by the personal consumption expenditure price index, accelerated in March to the fastest pace since mid-2022 as the Middle East conflict sent energy prices soaring.Treasury yields were down in premarket action, with the two-year rate nudging 0.1 basis point lower to 3.88% and the 10-year rate decreasing 0.8 basis point to 4.38%.Friday's economic calendar has the final Purchasing Managers' manufacturing index for April at 9:45 am ET, followed by the Institute for Supply Management's manufacturing index for the same month at 10 am. The weekly Baker Hughes oil-and-gas rig count posts at 1 pm.Gold fell 1.1% to $4,578 per troy ounce, while bitcoin rose 1.1% to $77,248.

Research Alert: Mga: Q1 Earnings Well Ahead Of Expectations; Guidance Revisions Mixed

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Magna International (MGA) posted Q1 adjusted EPS of $1.38 vs. $0.78 (+77%), well ahead of the $1.01 consensus, owing to much stronger-than-expected sales and margins, as revenue rose 3.1% to $10.38B ($110M above consensus) and adjusted EBIT margin expanded 190 bps to 5.4% (120 bps above consensus). MGA lowered 2026 revenue guidance to $41.5B-$43.1B from $41.9B-$43.5B (current consensus: $42.4B). The only other change to previous guidance was a reduction in its net interest expense expectation to $165M from $180M. Other prior guidance was unchanged. While the company did not raise full-year EPS guidance, we think a raise is now more likely given the magnitude of the beat, although we think management's caution is understandable given current macro uncertainties. Given MGA's broad product diversification across the automotive parts and equipment space, and status as the largest North American auto supplier, we think the strength of its Q1 results has positive implications for other auto suppliers.

RBC Confirms Sector-Perform Rating and US$57 Price Target on Magna International Following China Facility Tour

RBC Capital Markets maintained its sector-perform rating and US$57.00 price target on the shares of Magna International (MG.TO, MGA) after a visit to the company's Mechatronics facility in Kinshan, China.The tour was led by Mechatronics Global Senior Vice President Phil Chen, and Head of Testing Yewen Wu, it said.The bank observed a highly automated line serving a long-standing European OEM alongside a less automated line for a newer Chinese domestic OEM, which it believes is a reflection of the uncertainty in recent years around which Chinese brands would ultimately survive and scale."The visit reinforced our conviction that Magna will continue to deepen its penetration with domestic Chinese OEMs," said analyst Tom Narayan. "Rising automation at Magna's China facilities should drive meaningful cost improvements over time."Price: $84.70, Change: $+0.05, Percent Change: +0.06%

Magna International Shares Rise After Scotiabank Upgrade

Magna International (MGA) shares rose 1.5% in Friday trading after Scotiabank upgraded the stock to sector outperform from sector perform and boosted its price target to 98.60 Canadian dollars ($72.16) from CA$94.55.Intraday trading topped 1.69 million shares versus the daily average of 1.95 million.Price: $63.10, Change: $+0.90, Percent Change: +1.45%

Scotiabank Upgrades Magna International to Sector Outperform From Sector Perform, Adjusts Price Target to CA$98.60 From CA$94.55