Investing.com — Magna International Inc (TSX:MG) got an upgrade to “Outperform” from “Sector Perform” at RBC Capital Markets given an improved U.S. macroeconomic conditions, better dealer inventories, and a likely rebound in electric vehicle demand in 2025.
RBC raised its price target for the Canadian auto parts manufacturer to $52 from $41.
A stronger December U.S. dealer inventories and positive January sales trends, indicating late-2024 demand may not have been merely an election-driven spike, RBC says. Improved global auto production forecasts also support the view of a healthier production environment.
2025 could be a recovery year for EVs in the U.S. and Europe, RBC noted, adding that Magna’s anticipated guidance for 2025 could exceed consensus expectations, driven by easier year-over-year comparisons and continued customer recoveries.
The brokerage anticipates margin improvements in key business segments, including body exteriors and structures and complete vehicles.
RBC projects 8% EBIT growth in 2025, supported by a better global production outlook and operational recovery.