
Magna International (MGA) Stock Forecast & Price Target
Magna International (MGA) Analyst Ratings
Bulls say
Magna International is positioned for a positive 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 investments. The company benefits from a diverse revenue stream, with 48% of its $42.8 billion revenue in 2024 coming from North America and a strong reliance on key customers, including GM, which contributes 15.4% of revenue. Improved macroeconomic conditions, along with a positive production forecast and anticipated growth in electric vehicle sales, indicate favorable market trends for Magna moving forward.
Bears say
Magna International faces significant challenges due to the highly cyclical nature of the automotive industry, with potential impacts on earnings stemming from a weaker macroeconomic environment and increased competition. The company's revenue composition is heavily reliant on a few major customers, which accounted for over 70% of total revenue, leaving it vulnerable to pricing pressures and insourcing decisions that could further diminish profitability. Additionally, the company's projected guidance for declining top-line revenues and a substantial drop in earnings before interest and taxes (EBIT) indicates a potential struggle in offsetting rising input costs and achieving 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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