Magna Int'l (MGA) PT Raised to $42 at CFRA

CFRA analyst Garrett Nelson raised the price target on Magna Int'l (NYSE: MGA) to $42.00 (from $35.00) while maintaining a Hold rating.

The analyst comments "We increase our 12-month target by $7 to $42, based on a 2026 P/E of 7.5x, a justified discount to the stock's 10-year average forward P/E of 10.7x. We raise our adjusted EPS estimates to $4.90 from $4.40 for 2025 and to $5.60 from $5.40 for 2026. Following Magna's Q2 EPS beat and increased 2025 guidance, we are maintaining a Hold on the shares. While MGA's results were a step in the right direction following a stretch of very poor results (the release marked just MGA's second bottom line beat in the past seven quarters), we still see reason for caution. We prefer auto suppliers with greater exposure to faster-growing segments of the market and a less globalized footprint, as Magna has manufacturing facilities and other operations in 28 countries at year-end 2024, making it more vulnerable to tariffs than other auto suppliers. Additionally, we note that the company did not repurchase any stock during Q2, a missed opportunity in hindsight, and its cash returns to shareholders lag those of competitors."

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