e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - BMO Capital raised its price target on Magna Int’l (NYSE:MGA) to $52.00 from $49.00 on Monday, while maintaining an Outperform rating on the auto parts manufacturer. The new target suggests further upside potential as Magna currently trades at $48.75, with InvestingPro data showing the stock is approaching its 52-week high of $49.80 and trading at a P/E ratio of 12.97.
The firm cited a "catalyst rich setup" for Magna heading into 2026, pointing to multiple sources of potential margin upside for the company. This aligns with InvestingPro data showing Magna is trading at a low P/E ratio relative to near-term earnings growth, though its current gross profit margin stands at 13.85%.
BMO Capital highlighted expectations for rising free cash flow generation at Magna and noted the likely resumption of share repurchases as positive factors supporting the higher price target. This outlook is supported by Magna’s strong levered free cash flow of $2.04 billion in the last twelve months.
The research firm stated that the risk-reward ratio for Magna continues to be "skewed to the upside" when considering the company’s current valuation, which provides a margin of safety for investors.
Magna remains one of BMO Capital’s preferred investment ideas in the sector, according to the firm’s analysis of the auto parts manufacturer’s outlook.
In other recent news, Magna International Inc. reported third-quarter earnings that surpassed analyst expectations. This performance was attributed to strong operational execution, even amidst challenging market conditions. Magna’s shares saw a slight increase in pre-market trading following the announcement of these results. Additionally, RBC Capital raised its price target for Magna International from $47 to $48, maintaining a Sector Perform rating. The firm highlighted Magna’s operational excellence initiatives as a key factor in the company’s outperformance during the third quarter of 2025. These developments reflect the company’s ongoing efforts to navigate and succeed in the current economic landscape.
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