Credit Suisse Reiterates Outperform, Raises Price Target On Magna International On Another Strong Quarter

In a report published Thursday, Credit Suisse analyst Dan Galves reiterated an Outperform rating on

, and raised the price target from $121.00 to $127.00. In the report, Credit Suisse noted, "Magna reported adj 4Q14 EPS (ex items) of $2.52 vs consensus of $2.24. The strong performance was fully explained by a 3.5% revenue beat ($9.40bn vs consensus of $9.07bn) which, assuming a 25% incremental margin, translates to $0.29 of EPS upside. Adjusted EBIT / margin was $712MM / 7.6%, well above consensus in the $615MM / 6.8% range. Margin was up 100bp's YOY…impressive performance given 4Q14 was a difficult comp (Q4 was by far the highest margin quarter in 2013). We have raised our DCF-derived target price to $127 from $121, reflecting our updated estimates and the roll forward of our valuation model one-year. We maintain our Outperform rating." Magna International closed on Wednesday at $110.01.