Magna International Inc

MG: XTSE (CAN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	CAD 78.00	Xmbj	Xhwhsnlfg

Magna Earnings: 2026 Outlook Cut Adds to Negative Sentiment, but Shares Look Cheap to Us

David Whiston

Aug 5, 2024

Magna’s second-quarter results and negative outlook revisions for 2024 and 2026 sent the stock down 6% on Aug. 2. We are reducing our US dollar fair value estimate to $64 from $71 and our Canada fair value estimate to CAD 89 from CAD 97 based on the lower outlook. Despite the bad news in the quarter, we think Magna’s stock remains a good bargain for long-term investors willing to wait out the negative sentiment often surrounding auto suppliers. We also expect the company to announce a share buyback late this year or in early 2025 that could lift the share price.

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