
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 to approximately 8% in 2024, a significant increase from 5.7% in 2021, bolstered by improving production conditions and new business opportunities in higher-margin sectors. The firm is set to benefit from a favorable macroeconomic environment, as evidenced by improved inventory levels and anticipated growth in electric vehicle sales in both the US and Europe. Furthermore, the company's diverse revenue streams, with 48% generated from North America, 37% from Europe, and sustained key client relationships, support a robust growth trajectory moving forward.
Bears say
Magna International faces several challenges that contribute to a negative outlook on its stock, including the cyclical nature of the automotive industry, which risk worsening macroeconomic conditions could impact earnings significantly. The company's reliance on a concentrated customer base, with its top three customers generating 72.9% of revenue, heightens the risk of profitability pressures from increased competition, reduced demand, or OEM insourcing. Additionally, projected declines in both revenue and EBIT for key product lines, coupled with challenges related to commodity price increases and foreign exchange risks, further compound the negative financial outlook for Magna.
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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