
Magna International (MGA) Stock Forecast & Price Target
Magna International (MGA) Analyst Ratings
Bulls say
Magna International is expected to see its EBIT margins expand to approximately 8% in 2024, up from 5.7% in 2021, driven by improving operational efficiencies and a focus on higher-margin product areas such as Advanced Driver-Assistance Systems (ADAS). The company anticipates a significant upswing in margins in Q4 2025, supported by successful commercial and tariff recoveries, as well as advantageous new product launches. With a strong balance sheet, Magna is well-positioned to invest in both organic growth and strategic acquisitions, enhancing its long-term profitability and financial health.
Bears say
Magna International's reliance on a concentrated customer base, with the top six customers comprising 72.9% of its revenue, raises significant concerns about potential risks to profitability, particularly given the cyclical nature of the automotive industry and the possibility of a weaker macroeconomic environment. Additionally, challenges such as increased competition, pressures from original equipment manufacturers (OEMs), and the difficulty of offsetting rising commodity prices could further exert downward pressure on the company's margins, which are projected to fall short of previous guidance. Furthermore, uncertainties related to execution and the inability to achieve expected returns on investments compound the negative outlook for Magna's financial 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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