07:51:45 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Magna International Inc
Symbol MG
Shares Issued 410,843,408
Close 2015-07-20 C$ 70.73
Market Cap C$ 29,058,954,248
Recent Sedar Documents

Globe says Canaccord maintains Magna Int'l at "buy"

2015-07-20 08:24 ET - In the News

The Globe and Mail reports in its Saturday, July 18, edition that Canaccord Genuity's David Tyerman and Tao Ding maintained their "buy" rating on Magna International, while trimming their price target to $63 (U.S.) from $64 (U.S.) in light of its $1.9-billion (U.S.) acquisition of Getrag International on July 16. The Globe's Seres Lu, Ahmad Hathout and Darcy Keith write in the Eye On Equities column that the analysts say Getrag is an excellent strategic deal for Magna, however, it is expensive based on current metrics. The analysts expect Getrag's results to improve substantially in coming years. The analysts note that there is a significant unknown in how much Getrag margins are likely to improve. Mr. Tyerman and Mr. Ding believe Getrag will provide a "great short-term and long-term growth opportunity, but the high price makes it look slightly dilutive from a value perspective." The Canaccord analysts say: "However, there is considerable uncertainty as to the future profitability profile for the business, so there is material upside and downside risk to our Getrag forecast. ... Our forecast projects flat net income for 2016 and stronger net income thereafter, consistent with management's guidance."

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