-- 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."
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