Goldman Sachs analyst Mark Delaney downgraded Magna to Neutral from Buy with a price target of $58, down from $73. The analyst believes the company’s relatively slower content per vehicle growth compared to the firm’s broader tier one coverage will limit its earnings and free cash flow improvement, especially as auto production growth moderates. While Magna has been investing to support new programs in megatrend areas, its backlog could be impacted by slower electric vehicle ramps from key customers including Ford and GM, the analyst tells investors in a research note.
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