UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Magna International
In a report published Friday, Deutsche Bank reiterated its Hold rating on Magna International (NYSE: MGA), and raised its price target from $49.00 to $52.00.
Deutsche Bank noted, “Magna's Q3 results were solid, leading mgmt. to raise their outlook. MGA reported Q3 EPS ex. items of $1.13 vs. our $1.00 est. and cons' of $1.02. The upside was primarily from higher revenue. Revenue of $7.41bn was well ahead of our $7.11bn est ($140M of the upside was from lower margin tooling sales). Incremental margins of 13.8% were roughly in-line with our 14.1% est. FY12 rev is now expected to be in the range of $30.3-$31.2bn vs. $29-$30.5bn. The increase is being driven by higher N.A. and European sales. Surprisingly MGA did not lower its W.E. production est. as a higher than expected Q3 (due to favorable model mix) will offset a lower Q4. The implied EPS guidance range is $5.10 to $5.65 vs. $4.78-$5.50 prev.”
Magna International closed on Thursday at $44.67.
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