In a report released on February 14, Tamy Chen from BMO Capital maintained a Buy rating on Magna International (MGA – Research Report), with a price target of $47.00.
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Tamy Chen has given her Buy rating due to a combination of factors surrounding Magna International’s strategic position and future projections. Despite the challenges faced by the industry, such as elevated vehicle prices and potential interest rate cuts, the 2025 outlook for Magna International is seen as well-aligned with these conditions. The company’s ability to manage costs effectively, reduce capital expenditure, and resume share buybacks are viewed as positive aspects that support this recommendation.
Tamy Chen acknowledges that while the 2026 outlook appears optimistic, the strategic initiatives and potential recovery in vehicle demand could provide the necessary momentum for improved performance. Magna’s focus on returning capital to shareholders and achieving free cash flow targets further strengthens the case for a Buy rating. The valuation is considered reasonable, and although the path to further stock price increase depends on a cyclical recovery, the downside risk is perceived as limited.
In another report released on February 14, RBC Capital also maintained a Buy rating on the stock with a $51.00 price target.