China Expansion And Operational Improvements Will Lead To Future Success
Analysts have marginally revised their price target for Magna International, keeping fair value steady at $67.39. Slight changes to the discount rate and growth assumptions resulted in minimal overall impact.
What's in the News
- XPENG has selected Magna to assemble two new smart electric vehicle models for the European market, with production beginning in Q3 2025. This marks the first complete vehicle assembly for a Chinese OEM at Magna's Graz, Austria facility (Key Developments).
- Philip D. Fracassa appointed as Chief Financial Officer, succeeding Patrick McCann, who will remain as advisor until February 2026 (Key Developments).
- Magna will showcase advancements in sustainable materials, drivetrain technologies, and Advanced Driver Assistance Systems at IAA Mobility 2025 in Munich, including new solutions for vehicle electrification and safety (Key Developments).
- No shares repurchased during the latest buyback tranche, with 5.85 million shares completed under the buyback program as of June 30, 2025 (Key Developments).
- Raised 2025 full-year total sales guidance to $40.4 billion to $42.0 billion, up from previous projections (Key Developments).
Valuation Changes
- Fair Value remained unchanged at $67.39.
- Discount Rate has risen slightly from 8.15% to 8.21%.
- Revenue Growth increased marginally from 1.83% to 1.84%.
- Net Profit Margin fell slightly from 3.95% to 3.93%.
- Future P/E decreased very slightly from 9.33x to 9.32x.
Disclaimer
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