Update shared on10 Jul 2025
Fair value Increased 63%The substantial upward revision in Magna International's price target is primarily driven by increased revenue growth forecasts from -1.0% to 8.5% per annum and a rise in net profit margin from 4.02% to 5.79%, resulting in a new consensus fair value of CA$107.35.
WHAT'S IN THE NEWS
- Magna launched a City Delivery pilot program in Toronto featuring electric autonomous delivery vehicles, partnering with Bell Media's Astral for exclusive advertising placements and leveraging Environics Analytics for optimal vehicle routing.
- The City Delivery program aims to reduce delivery costs, improve road safety, and cut CO2 emissions.
- Raised 2025 earnings guidance with expected sales of $40.0–$41.6 billion, up from prior guidance of $38.6–$40.2 billion.
- Repurchased 1.3 million shares for CAD 51 million in Q1 2025, completing 2.04% of shares (5.85 million) for CAD 253 million under the current buyback program.
VALUATION CHANGES
Summary of Valuation Changes for Magna International
- The Consensus Analyst Price Target has significantly risen from CA$65.78 to CA$107.35.
- The Consensus Revenue Growth forecasts for Magna International has significantly risen from -1.0% per annum to 8.5% per annum.
- The Net Profit Margin for Magna International has significantly risen from 4.02% to 5.79%.
Disclaimer
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