Canaccord Genuity raised it price target on Magna International Inc. (TSE:MG) but kept is "hold" rating on North America’s largest auto-parts supplier.
Canaccord boosted its target price to $91 from $89.
The firm said it continues its "hold" recommendation on Magna "because share price appreciation has pushed up Magna’s valuation to a high level."
Canaccord continues to expect moderate share price appreciation for the next couple of years from continued moderate earnings-per-share growth and a steady, Analyst David Tyerman said in a note emailed to clients today.
He said that during Magna's investor day yesterday, the company indicated it expects its earnings before interest and taxes margins in emerging markets to reach roughly 75 percent of North American levels, that is, about 7 to 7.5 percent in 2 to 3 years.
"This is quicker than we expected and adjusted our forecast accordingly," he said.
Canaccord boosted its forecast for Magna's annual earnings per share in 2014 to $7.70 from a previous guidance of $7.54, and 2015's EPS to $8.85 from $8.44.
Shares of the Aurora, Ontario-based company rose 1 percent to C$87.95 at 1:26 p.m. in Toronto today.
Magna's north American sales are expected to modestly outperform industry production. Margins seem likely to remain near current high levels, Canaccord's Tyerman said. European short-term sales growth is likely to be modest as programs roll off and due to Magna's on-going focus on developing a competitive footprint.
Magna thinks there are opportunities that could enable it to generate sales growth in excess of industry production in the medium-long term, Canaccord said.
The stock has rallied 77 percent so far this year, giving the company a market value of C$19.64. The current consensus among 18 analysts is to "buy" stock in Magna International.
Reported by Proactive Investors 14 hours ago.
Canaccord boosted its target price to $91 from $89.
The firm said it continues its "hold" recommendation on Magna "because share price appreciation has pushed up Magna’s valuation to a high level."
Canaccord continues to expect moderate share price appreciation for the next couple of years from continued moderate earnings-per-share growth and a steady, Analyst David Tyerman said in a note emailed to clients today.
He said that during Magna's investor day yesterday, the company indicated it expects its earnings before interest and taxes margins in emerging markets to reach roughly 75 percent of North American levels, that is, about 7 to 7.5 percent in 2 to 3 years.
"This is quicker than we expected and adjusted our forecast accordingly," he said.
Canaccord boosted its forecast for Magna's annual earnings per share in 2014 to $7.70 from a previous guidance of $7.54, and 2015's EPS to $8.85 from $8.44.
Shares of the Aurora, Ontario-based company rose 1 percent to C$87.95 at 1:26 p.m. in Toronto today.
Magna's north American sales are expected to modestly outperform industry production. Margins seem likely to remain near current high levels, Canaccord's Tyerman said. European short-term sales growth is likely to be modest as programs roll off and due to Magna's on-going focus on developing a competitive footprint.
Magna thinks there are opportunities that could enable it to generate sales growth in excess of industry production in the medium-long term, Canaccord said.
The stock has rallied 77 percent so far this year, giving the company a market value of C$19.64. The current consensus among 18 analysts is to "buy" stock in Magna International.
Reported by Proactive Investors 14 hours ago.