
Magna International (MGA) Stock Forecast & Price Target
Magna International (MGA) Analyst Ratings
Bulls say
Magna International is experiencing a positive outlook due to improving EBIT margins, projected to reach approximately 8% in 2024, up from 5.7% in 2021, driven by operational efficiencies, the normalization of light vehicle production (LVP), and successful R&D efforts in higher-margin sectors like Advanced Driver-Assistance Systems (ADAS). The company's robust revenue base of USD 42.8 billion in 2024 is well-diversified, with significant contributions from North America, Europe, and a concentration on major customers such as GM, Mercedes, and Ford. Additionally, Magna's strong balance sheet allows the company to capitalize on organic and inorganic growth opportunities, further enhancing its long-term financial prospects.
Bears say
Magna International's reliance on a concentrated customer base, with its top six customers generating 72.9% of revenue, poses significant risks, especially in a highly cyclical auto industry that could face a downturn. Additionally, challenges such as pricing pressure from Original Equipment Manufacturers (OEMs), increased competition, and potential inability to manage rising commodity costs could further suppress profitability and margins, which are projected to fall short of previous guidance. Furthermore, the expectation of a lower growth rate and profits, combined with execution risks and foreign exchange volatility, justifies a negative outlook on the company's stock performance.
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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