Morgan Stanley Lifts Magna Worldwide’s Goal Value to $96, Upgrades to Equal-weight


Morgan Stanley raised their inventory value forecast on Magna Worldwide to $96 from $61 and upgraded the mobility expertise firm’s inventory to an “Equal-weight” score.

“We improve Magna Worldwide (MGA) to Equal-weight from Underweight as we have now higher confidence that administration’s technique can drive increased share/content material on excessive progress BEV platforms. We double our income CAGR to 4% and lift our value goal to $96,” famous Adam Jonas, fairness analyst at Morgan Stanley.

“Raised exit EBITDA margin forecast to eight.9% vs. 8.2% beforehand as our increased progress drives working leverage, primarily within the BEV-exposed companies (BEV Energy & Imaginative and prescient, Physique & Exterior, Full Seating and Full BEV automobile meeting). This variation provides roughly $5 to our value goal.”

The corporate is about to announce its subsequent earnings report on Thursday, Might 6. In keeping with ZACKS Analysis, Magna Worldwide is anticipated to put up $9.75 billion in gross sales for the present fiscal quarter.

The U.S. listed Magna Worldwide’s shares, which surged over 25% in 2020, rose 4.6% to $93.64 on Monday.

Eleven analysts who supplied inventory rankings for Magna Worldwide within the final three months forecast the typical value in 12 months at $92.18 with a excessive forecast of $100.00 and a low forecast of $61.00.

The common value goal represents a -1.56% lower from the final value of $93.64. Of these 11 fairness analysts, seven rated “Purchase”, three rated “Maintain” and one rated “Promote”, based on Tipranks.

Morgan Stanley gave the bull-case state of affairs goal value of $135 and the worst-case state of affairs forecast of $55.

MGA is the third-largest international auto provider, with management in lots of product segments, sturdy stability sheet, and enticing valuation vs. friends. We imagine Magna has a capability to develop its EV and AV-related enterprise strains in a approach that may greater than compensate for the run-out of ICE/legacy OEM product strains,” Morgan Stanley’s Jonas added.

“The online result’s modest progress over market, balanced by a place to begin of peak cycle and margins. We see the inventory as largely pretty valued with a largely even risk-reward skew.”

Different fairness analysts additionally just lately up to date their inventory outlook. Magna Worldwide had its value goal upped by KeyCorp to $98 from $86. They at the moment have an obese score on the inventory. Barclays upped their goal value to $87 from $75 and gave the corporate an equal weight score.

Take a look at FX Empire’s earnings calendar

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