
Magna International (MGA) Stock Forecast & Price Target
Magna International (MGA) Analyst Ratings
Bulls say
Magna International is projected to experience significant financial improvement, with EBIT margins anticipated to expand to approximately 8% in 2024, up from 5.7% in 2021, driven by enhanced operational efficiencies and new product launches in higher-margin sectors. The firm has demonstrated resilience through successful operational excellence initiatives and commercial recoveries, underscoring its ability to adapt and thrive in a competitive landscape. Furthermore, leveraging a robust balance sheet enables Magna to pursue both organic and inorganic growth opportunities, positioning the company favorably for future revenue and margin growth.
Bears say
Magna International faces a negative outlook primarily due to its high reliance on a limited number of customers, with 72.9% of revenue stemming from the top six clients, which poses risks should any of these relationships falter. Additionally, the automotive industry's cyclical nature, ongoing competition, and pressures from original equipment manufacturers may hamper profitability, with anticipated EBITDA margins falling short of initial guidance. Furthermore, the company's inability to effectively manage commodity price increases and foreign exchange risks could further strain financial performance, leading to a lower growth rate and earnings potential.
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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