S&P 500 rides Apple-led tech rally higher
Investing.com - BMO Capital has raised its price target on Magna Int’l (NYSE:MGA) to $47.00 from $46.00 while maintaining an Outperform rating on the auto parts manufacturer. According to InvestingPro data, Magna currently trades at an attractive P/E ratio of 9.7x and offers a substantial 4.7% dividend yield, having maintained dividend payments for 34 consecutive years.
The price target increase follows what BMO described as a largely in-line quarterly report from Magna, which the firm viewed as encouraging after previous quarters of mixed results and guidance cuts.
BMO Capital indicated that it continues to prefer Linamar (LNR) followed by Magna at the top of its preference order among automotive suppliers.
The firm acknowledged ongoing tariff volatility but noted there is now more clarity compared to earlier in 2025, with current auto tariffs being less punitive than initially feared.
BMO maintained its target multiple of 5x on its revised 2026 EBITDA estimate for Magna, citing compelling valuation and its belief that production should hold to current expectations.
In other recent news, Waymo has announced plans to expand its fleet by adding 2,000 new robotaxis by 2026. Currently, the company provides over 250,000 paid trips each week in cities such as Phoenix, San Francisco, Los Angeles, and Austin. As part of its growth strategy, Waymo intends to extend its fully autonomous ride-hailing services to Atlanta, Miami, and Washington, D.C. in 2026. To support this expansion, Waymo is investing in a new autonomous vehicle factory in Metro Phoenix, in collaboration with Magna. This new facility, covering 239,000 square feet, will focus on producing thousands of Jaguar I-PACEs equipped with Waymo’s autonomous technology. The factory represents a multi-million dollar investment and has already generated hundreds of jobs in Mesa, Arizona. These developments reflect Waymo’s commitment to scaling its operations and meeting the increasing demand for autonomous transportation services.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.