06:25 AM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target by $9 to $46, based on a '25 P/E of 7.0x, a justified discount to MGA's 10-year mean forward P/E of 11.3x. We lower our adjusted EPS estimates to $5.80 from $6.20 for '24 and to $6.60 from $7.35 for '25. MGA posts Q1 adjusted EPS of $1.08 vs. $1.15 (-6%), well short of the $1.24 consensus. The miss was primarily driven by weaker-than-expected margins, as MGA's sales rose 3% to $10.97B ($10M below consensus) and adjusted EBIT margin expanded 10 bps to 4.3% (60 bps below consensus). Sales were lower on a Y/Y basis across three of MGA's four segments, with Complete Vehicles posting the largest drop (sales -15% and adjusted EBIT -48%), a segment that produces troubled EV maker Fisker's Ocean. MGA lowered prior 2024 guidance, with its forecasted range for sales and adjusted net income going to $42.6B-$44.2B and $1.5B-$1.7B from $43.8B-$45.4B and $1.6B-$1.8B, respectively, which assumes no further production of the Ocean. We maintain a Hold, seeing better opportunities across the space.