-- 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.