Buy, Sell or Hold: Magna Int'l. (A) (MG-T) — Stock Predictions at Stockchase

TSE:MG

104.19

1.60 (1.56%) 1d

Showing 1 to 15 of 1,015 entries

WATCH

Whole industry is being impacted by the chip shortages. She hasn't been in this space in a while. As all vehicles become electric, there will be demand, and she wants the companies that will be well positioned. MG would probably be her preference, but she's just watching right now. Excitement earlier this year has died down.

Automotive

BUY

Allan Tong’s Discover Picks With lockdowns thankfully in the rear-view mirror, cars have returned to roads with a vengeance. Those gun shy about taking public transit will drive. That’s the macro tailwind. The macro headwind is that this venerable Canadian maker of car parts is facing a shortage of computer chips. Not only Magna, but the entire sector and several others are being hit, a malady that realistically won’t end until Q1 or Q2 in 2022. Offsetting this short-term hurdle is Magna investing $70 million in a new Michigan plant to manufacture parts for the red-hot EV business, and partnering with an Israeli start-up. It already has deals with companies in Austria, China and South Korean in the EV sector. Smart. Magna is investing the future. Meanwhile, rumours persist that Apple will partner with Magna to produce self-driving cars. Read Barbell investing: Adobe, BlackRock, Magna for our full analysis.

Automotive

BUY

He would stick with it. The auto sector is the epicentre of the semiconductor shortage. It's not a demand problem but a short term supply issue. He thinks they still have a couple of years of decent growth ahead of them. This is the best sector of the market.

Automotive

PAST TOP PICK

(A Top Pick Oct 08/20, Up 43%) Value stock left behind from rotation to tech. Supply chain issues, failed takeover. Still growing at 24%, 8x multiple. A place for investors right now. Poised for the EV trend.

Automotive

Unlock Panic-Proof Portfolio and Top Stock Picks

Become a member Or, Sign In

PAST TOP PICK

(A Top Pick Aug 10/21, Down 12.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MG has triggered its stop at $95. We recommend covering the remaining position at this time. We will look for better opportunities.

Automotive

PARTIAL BUY

Magna vs. Martinrea Supply chain constraints have hit hard the carmakers and car-parts makers. We likely will see lower-than-expected volumes for another year. US-China squabbles will also have an ongoing effect. Longer-term, MG is a partial buying opportunity. He hasn't looked closely at the car parts makers though to choose one over the other. He owns Linamar. Expect volatility in this space.

Automotive

BUY

No, it isn't heading down. It adapts well to macro conditions, namely e-cars. Magna is ready for EVs. He likes this name. It will do well for the next five years. The valuation is slightly too high for him, but he's watching it. He also likes and owns Tesla within the car space, and likes GM.

Automotive

BUY

Has owned this in the $60s, because he likes to buy cyclicals when they are out of favour. During the pandemic, the feeling was that people won't drive, but he thought that people would need cars to go to the store and won't ride the subway. He's always liked Magna. Near-term, the chip shortage is limiting production, so this will impact Magna, but it's a short-term problem and a buying opportunity.

Automotive

DON'T BUY

It already hit its usual valuation peak. The stock has fallen 20% and trading poorly against its technical support level. Its fair market value is high. Be cautious here. It makes him nervous. Looks like it will fall further.

Automotive

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The chip shortage is impacting the company and growth expectations. This should pass over time. It is currently at 9x earnings. Shares have climbed 80% since last year. A strong long-term operator with attractive valuation and dividend. Unlock Premium - Try 5i Free

Automotive

BUY on WEAKNESS

A wonderful company, but has seen some share price weakness, due to more competition over an acquisition they want to make. Their positioned in the auto parts space is excellent. Their fundamentals boasts revenue growth, strong margins and free cash flow, and share buybacks and dividend hikes. They're positioning well for e-cars. The economy will remain hot, but Magna is very economically sensitive (i.e. fears of a recession), so it can be volatile. So, buy on a lower price to weather that volatility.

Automotive

WATCH

She doesn't own any auto parts stocks. She's looking at the sector, as it will be a very attractive space with EVs. She hasn't decided yet what to buy in the space. Not a lot of exposure in China, which is a large market. Building up its EV expertise. Got ahead of itself, and now there's a pullback.

Automotive

Unlock Panic-Proof Portfolio and Top Stock Picks

Become a member Or, Sign In

TOP PICK

Stockchase Research Editor: Michael O'Reilly Canadian auto parts manufacturer, MG, has seen sales into the light vehicle sector, especially in China, soar. Recent EPS reported at $1.40 was just shy of $1.44 expecations, brought about by semiconductor chip shortages worldwide. Its role in EV manufacturing is built around Fisker, GM, Ford and Volkswagen -- and it is becoming the world's go to supplier in that space. It is good value here, trading at 12x earnings, compared to peers at 20x. It has a PEG ratio under 1 and trades at 2.7x book value. It pays a good dividend, backed by a payout ratio under 20% of cashflow. We would buy this with a stop loss at $95, looking to achieve $135-- upside potential over 24%. Yield 2.04% (Analysts’ price target is $128.13)

Automotive

BUY on WEAKNESS

The Veoneer deal will be accretive starting in 2023. MG paid more, but it gives MG a leg into advance driving systems. Magna will continue to grow. Buy this dip. It still trades at a reasonable valuation and offers a good growth rate. It reminds him of Transforce. [Note: some audio problems]

Automotive

DON'T BUY

How are they going to position themselves for the coming EV cycle? None of the these auto suppliers have figured this out. He would not look at the suppliers so much as the branded companies.

Automotive

Showing 1 to 15 of 1,015 entries

Magna Int'l. (A)(MG-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 34

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 6

Total Signals / Votes : 41

Stockchase rating for Magna Int'l. (A) is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Magna Int'l. (A)(MG-T) Frequently Asked Questions

What is Magna Int'l. (A) stock symbol?

Magna Int'l. (A) is a Canadian stock, trading under the symbol MG-T on the Toronto Stock Exchange (MG-CT). It is usually referred to as TSX:MG or MG-T

Is Magna Int'l. (A) a buy or a sell?

In the last year, 41 stock analysts published opinions about MG-T. 34 analysts recommended to BUY the stock. 6 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Magna Int'l. (A).

Is Magna Int'l. (A) a good investment or a top pick?

Magna Int'l. (A) was recommended as a Top Pick by on . Read the latest stock experts ratings for Magna Int'l. (A).

Why is Magna Int'l. (A) stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Magna Int'l. (A) worth watching?

41 stock analysts on Stockchase covered Magna Int'l. (A) In the last year. It is a trending stock that is worth watching.

What is Magna Int'l. (A) stock price?

On 2021-10-20, Magna Int'l. (A) (MG-T) stock closed at a price of $104.19.

Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies.

We paraphrase the experts by hand, we watch the shows and write down what we understood from the experts’ comments. We are human and can make mistakes, help us fix any errors. If you see something that you know is not right or if there is a problem with the site, feel free to email us at : hello@stockchase.com.