
Magna International (MGA) Stock Forecast & Price Target
Magna International (MGA) Analyst Ratings
Bulls say
Magna International's positive outlook stems from its robust revenue structure, with 48% of its USD 42.8 billion revenue generated from North America and strong customer reliance, as evidenced by the top six customers accounting for 72.9% of revenue. The company's strategic positioning in the electric vehicle market enhances its total addressable market, allowing it to capitalize on the ongoing EV transition. Additionally, improving investor sentiment toward auto suppliers, particularly in light of potential exemptions on USMCA compliant parts, further bolsters confidence in Magna's future earnings potential.
Bears say
The analysis of Magna International indicates several fundamental challenges contributing to a negative outlook on the company's stock. The automotive industry is recognized as highly cyclical, and a potential economic downturn may adversely affect Magna's earnings, particularly as 72.9% of its revenue is derived from its top six customers, creating a concentration risk. Additionally, increasing competition, pricing pressure from original equipment manufacturers (OEMs), and the inability to offset rising commodity costs and properly achieve returns on investments compound the concerns surrounding profitability and execution risks.
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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