Magna downgraded to Underperform from Peer Perform at Wolfe Research

Wolfe Research analyst Emmanuel Rosner assumed coverage and downgraded Magna to Underperform from Peer Perform. Th firm sees limited scope for earnings growth in 2025 given a flat production environment, persistent mix headwinds, limited visibility into a backlog levered to legacy OEMs’ EV volumes, and their track-record of operational hiccups, the analyst tells investors in a research note. Magna is also most at-risk from the structural challenges facing suppliers, including from Chinese competition, disintermediation by OEMs and new entrants, and a lack of clear technical superiority, the firm added.