Magna International Analysts Increase Their Forecasts After Better-Than-Expected Q2 Earnings

Magna International Inc MGA reported better-than-expected second-quarter financial results and raised FY23 revenue guidance above estimates.

Magna International reported second-quarter FY23 sales growth of 17.3% year-on-year to $10.98 billion, beating the analyst consensus of $10.20 billion. Adjusted EPS of $1.50 beat the analyst consensus of $1.25.

Magna raised its FY23 sales outlook from $40.2 billion-$41.8 billion to $41.9 billion-$43.5 billion versus the estimate of $41.74 billion. Magna raised FY23 adjusted EBIT margin outlook from 4.7%-5.1% to 4.8%-5.2%.

Magna shares fell 3.4% to close at $60.90 on Friday.

These analysts made changes to their price targets on Magna following earnings announcement.

• Wells Fargo raised the price target on Magna from $54 to $66. Wells Fargo analyst Colin Langan maintained an Equal-Weight rating.
• BMO Capital boosted the price target on Magna from $65 to $67. BMO Capital analyst Peter Sklar maintained an Outperform rating.

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