Research analysts at TD Securities have increased their price target for Magna International Inc. (NYSE:MGA) from $57.00 to $58.00, suggesting a potential upside of 18.42% from the stock’s previous closing price. The brokerage maintains a “buy” rating on the shares, reflecting confidence in the company’s performance. This adjustment was reported on October 30, 2023, and comes amid a series of upgrades from various financial institutions.
Other brokerages have also reassessed their outlook on Magna International. Wells Fargo & Company raised its target from $45.00 to $51.00, assigning an “equal weight” rating. Meanwhile, CIBC reaffirmed a “neutral” rating while increasing its target price from $46.00 to $47.00. The Royal Bank of Canada also adjusted its target from $47.00 to $48.00, giving the stock a “sector perform” rating. In a separate report, Citigroup upgraded its rating to “hold” earlier in October.
Based on data from MarketBeat.com, three analysts have rated Magna International with a Buy, while fifteen have issued a Hold rating, and one has assigned a Sell rating. The average price target across these analyses stands at $48.57.
Recent Earnings Performance
Magna International’s latest quarterly earnings report, released on October 31, 2023, revealed impressive results. The company reported earnings per share (EPS) of $1.33, surpassing the consensus estimate of $1.24 by $0.09. The revenue for the quarter reached $10.50 billion, exceeding analysts’ expectations of $10.03 billion. This performance reflects a year-over-year revenue increase of 1.8%, while the company recorded a net margin of 2.91% and a return on equity of 11.89%.
Looking ahead, Magna International has set its fiscal year 2025 guidance at an EPS of $5.87. Analysts’ expectations for the current fiscal year suggest that the company is well-positioned for continued growth.
Institutional Investment Trends
Recent activity among institutional investors indicates growing confidence in Magna International. Notably, Bank of New York Mellon Corp increased its stake in the company by 5.5% during the first quarter, now holding 252,500 shares valued at approximately $8.58 million. ARK Investment Management LLC also entered the scene, purchasing a new stake worth about $5.48 million.
Adding to this trend, ARGA Investment Management LP raised its position in Magna by 17.0%, now owning nearly 3 million shares valued at $101.89 million. Quantbot Technologies LP significantly increased its holdings by an astounding 3,849.3%, now owning over 165,000 shares worth approximately $5.64 million.
As of now, institutional investors and hedge funds collectively own approximately 67.49% of Magna International’s stock, indicating strong institutional support for the company.
Magna International plays a crucial role in the automotive industry, designing and manufacturing components and systems for vehicle manufacturers globally. Its operations span various segments, including Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles.
The recent adjustments in price targets and the company’s solid earnings performance suggest a robust outlook for Magna International in the competitive automotive market.
