2010
01.14
01.14
Magna International Inc. (MGA.A) – $57.85 – MGA Issues Guidance Slightly Below Our Expectations
Sector Perform, Average Risk, Price Target: $58.00
MGA announced F10 outlook for sales of $19.5-$20.5B vs. RBC CM’s prior estimate of $20.6B, mainly on lower average dollar content per vehicle (CPV) in North America. RBC CM’s revised F10 sales estimate is $20.2M from $20.6M and F10 EPS estimate remains the same at $2.75. The analyst expects the causes for CPV declines to be: 1) a trend towards lighter fuel efficient vehicle vs MGA’s higher CPV platforms, largely in SUVs and luxury, and 2) MGA’s strategic focus on a profitable product line up as it builds into foreign platforms with a lower CPV. Price Target Unchanged at $58.
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