Citi cuts Magna target, opens ‘negative catalyst watch’

Citi lowered the firm’s price target on Magna to $47 from $52 and keeps a Neutral rating on the shares. The analyst also opened a “30-day negative catalyst watch” on the shares. Though the shares have underperformed year-to-date, Citi’s short-term bias is to the downside, the analyst tells investors in a research note. The firm says consensus Q2 estimates seem too high and that it sees relatively more risk to Magna’s 2024 guidance owing to a more aggressive second half margin ramp implied by the outlook.