03:27:39 EDT Thu 25 Apr 2024
Enter Symbol
or Name
USA
CA



Magna International Inc
Symbol MG
Shares Issued 402,264,201
Close 2016-01-18 C$ 48.48
Market Cap C$ 19,501,768,464
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Globe says Magna exposed to self-driving car trend

2016-01-19 06:28 ET - In the News

The Globe and Mail reports in its Tuesday, Jan. 19, edition that Magna International ($48.48) stands a good chance of benefiting from the rise of robotic automobiles. The Globe's Chris Umiastowski writes that Apple is working on its own electric-car design. Apple outsources practically all of its manufacturing operations. If Apple enters the car business, Mr. Umiastowski expects it to outsource as much manufacturing as possible. Mr. Umiastowski doubts Apple will start by using Chinese manufacturing partners as it does with consumer electronics. Google, too, has been testing self-driving cars for several years, and there is no reason to think it will want to get into manufacturing when other world-class manufacturers already exist. There is no bigger independent automotive manufacturing company than Canada's Magna. Over the past five years, Magna has driven strong financial performance and the stock trades at a price-to-earnings ratio below eight using this year's consensus earnings-per-share estimate. If Silicon Valley makes a heavy push into the car business, Mr. Umiastowski believes Magna will be a winner. The Globe's Ian Tam said buy Magna on Jan. 14. It was then worth $51.69.

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