- Morgan Stanley analyst Adam Jonas lowered Magna International's ( NYSE: MGA ) price target on to $79 from $84 and keeps an Overweight rating on the shares.
- He is making "material cuts" to forecasts across his autos and shared mobility coverage, particularly in FY23, to reflect slowing growth and credit headwinds.
- Analyst notes that his top line and EBITDA estimate cuts leave his forecasts 5%-10% or more below consensus expectations. Key drivers of the changes include a U.S. SAAR cut that takes his FY23 SAAR forecast to 15M units. Also he expects price/mix deterioration from peak comps and auto credit pressures.
- The stock is currently trading at ~$53.28 per share and has seen a downside in price of ~34.7% YTD.
- Market cap stands at $16.6B, and a c omparative rating to the peers that look like this:
- Comparing price performance of the stock against its peers on YTD basis looks like:
- Quant rating of 'Hold' with 2.92 score and highest marks given to profitability factor, and lowest to revisions.
- On the contrary, SA Author' s give the stock a 'Buy' rating with 4.00 score.
- Commentary from SA authors, ' Magna received a buy rating and a $75 price target when we last covered the stock. '
- Wall Street rating 'Buy' with 4.09 score; average price target of $78.7.
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Morgan Stanley cuts Magna price target to $79