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Research Alert: CFRA Maintains Hold Opinion On Shares Of Magna International Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Magna International Inc.
Nov 3, 2025 5:06 AM

07:40 AM EST, 11/03/2025 (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 increase our 12-month target by $8 to $50, based on a 2026 P/E of 8.5x, a justified discount to the stock's 10-year average forward P/E of 10.7x. We raise our adjusted EPS estimates to $5.20 from $4.90 for 2025, to $5.90 from $5.60 for 2026, and introduce 2027 at $6.25. MGA posted Q3 adjusted EPS of $1.33 vs. $1.28 (+4%), well ahead of the $1.25 consensus. The beat was attributed to much stronger-than-expected sales and margins, as revenue rose 1.8% to $10.46B ($200M above consensus) and adjusted EBIT margin expanded 10 bps to 5.9% (50 bps above consensus). The margin expansion was particularly noteworthy given the challenging backdrop of supply chain disruptions and trade uncertainty that continue to pressure auto suppliers. Despite the beat and increased full-year guidance, we are maintaining a Hold on the shares, preferring auto suppliers with most robust earnings growth potential. The recent Ford recall on Magna rearview mirrors and other supply chain disruptions present ongoing and tangible risks.

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