
TSE:MG
This summary was created by AI, based on 3 opinions in the last 12 months.
Magna International (MG-T) has faced challenges since its heavy investment in electric vehicles in 2021, largely due to unmet demand and the negative effects of tariffs. However, the company has taken significant steps to address these issues, especially in its partnerships with Chinese OEMs, leading to a recovery in market share within innovative fields like smart door handles and driverless technology. Recently, the company reported a strong quarterly performance that exceeded market expectations, highlighting its resilience amid headwinds from CUSMA and ongoing complexities in auto supply chains. The automotive sector, which has been under pressure from tariffs, is showing renewed vigor as investors begin to return, signaling a potential recovery for stocks in this space.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Markets liked the latest quarter results. EPS beat expectations and revenue was inline with what the street expected. They raised dividends by 8%. Auto sales is expected to rebound in the following year. Unlock Premium - Try 5i Free
It has had a strong rebound. The auto production is rebounding nicely from the 2020 lows. They make money on internal combustion engines, EVs and hybrids. He owns LNR-T instead.
He just bought it. They've done a great job and expects them to be the generic "white label" parts-maker for all e-carmakers. Apple is talking to Hyundai about e-cars, but Hyundai works with Magna. He sees growth in e-cars. Costs will be managed efficiently (i.e. battery costs declining) as Magna transitions to e-cars, and Magna has been doing this for a long time, around 80 years.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A well run company that has a strong balance sheet, good growth potential, and the EV industry opens new opportunities. EPS is expected to double in 2021. Unlock Premium - Try 5i Free