Magna price target lowered to $51 from $52 at RBC Capital

RBC Capital analyst Tom Narayan lowered the firm’s price target on Magna (MGA) to $51 from $52 but keeps an Outperform rating on the shares after its Q4 earnings beat and outlook. The company’s FY25 guidance was impacted by FX, OEM mix, and a contract ending in the Complete Vehicles – CV – segment, but even with these headwinds, Magna could unlock shareholder value by divesting its Seating Systems and/or CV businesses, the analyst tells investors in a research note. Seating could be easily digestible by a larger Seating competitor who could easily realize synergies and bring margins up to industry par and CV could be sold to a Chinese OEM seeking to expand production in Europe and employ local labor, the firm adds.