Update shared on 15 Dec 2025
Analysts have modestly raised their price target on Magna International to approximately $69.38 per share, reflecting slightly lower discount rate assumptions, a small upward revision to long term profit margins, and a marginally higher expected future P/E multiple, even as revenue growth forecasts edge down.
What's in the News
- GAC and Magna launched a vehicle assembly program in Europe focused on accelerating electric mobility, with serial production of the five star Euro NCAP rated AION V SUV now underway at Magna's Graz facility and initial market entries in Finland, Poland and Portugal (Key Developments).
- Magna is expanding its electric drive systems footprint in China with a new 160,000 square foot facility in the Jiujiang Economic Development Zone, Wuhu, initially serving Chery and expected to create about 200 jobs at full production (Key Developments).
- The Board of Directors authorized a new share buyback plan, with Magna announcing a repurchase program for up to 25,300,000 shares through November 6, 2026, subject to Toronto Stock Exchange approval and intended partly for share cancellation and stock based compensation (Key Developments).
- Magna reported that between July 1 and September 30, 2025, it repurchased no additional shares under its 2024 buyback, leaving the cumulative total at 5,851,327 shares repurchased for $253 million, representing 2.04% of shares (Key Developments).
- Magna raised its 2025 total sales guidance to a range of $41.1 billion to $42.1 billion, up from its prior outlook of $40.4 billion to $42.0 billion (Key Developments).
Valuation Changes
- Fair Value Estimate is unchanged at approximately CA$69.38 per share, indicating no material revision to the intrinsic value assessment.
- The Discount Rate decreased slightly from about 8.49 percent to 8.31 percent, modestly increasing the present value of projected cash flows.
- Revenue Growth edged down from roughly 2.14 percent to 2.10 percent, reflecting a slightly more cautious top line outlook.
- Net Profit Margin has risen marginally from about 4.03 percent to 4.04 percent, incorporating a small improvement in long term profitability assumptions.
- Future P/E increased slightly from around 9.31x to 9.45x, implying a modestly higher expected valuation multiple on forward earnings.
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