
Magna International (MGA) Stock Forecast & Price Target
Magna International (MGA) Analyst Ratings
Bulls say
Magna International has demonstrated a robust financial outlook, with projected EBIT margins expanding from 5.7% in 2021 to approximately 8% in 2024, driven by normalizing light vehicle production (LVP) and reduced engineering investment. The automotive supplier is positioned for success with healthy revenue contributions from its major customers, including GM, Mercedes, and Ford, alongside expectations of improved macroeconomic conditions and stronger EV sales in the U.S. and Europe. Additionally, the anticipated increase in global production and new business opportunities in higher-margin sectors, such as Advanced Driver-Assistance Systems (ADAS), further support a positive outlook for the company's financial performance.
Bears say
Magna International faces several fundamental challenges that contribute to a negative outlook on its stock. The automotive industry is characterized by high cyclicality, and a weaker macroeconomic environment poses risks to expected earnings, compounded by significant reliance on a limited number of customers for revenue—72.9% of income derives from just six clients, primarily General Motors. Additionally, increasing competition, pricing pressures from original equipment manufacturers (OEMs), and the company's exposure to rising commodity costs could further diminish profitability and hinder the ability to achieve satisfactory returns on investments.
This aggregate rating is based on analysts' research of Magna International and is not a guaranteed prediction by Public.com or investment advice.
Magna International (MGA) Analyst Forecast & Price Prediction
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