Magna price target lowered to $52 from $55 at Scotiabank

Scotiabank analyst Jonathan Goldman lowered the firm’s price target on Magna to $52 from $55 and keeps a Sector Perform rating on the shares. Light vehicle production year-to-date has been bolstered by restocking and increased OEM incentives, the analyst tells investors. While inventory/sales ratios and incentives are below historical levels, these factors should sustain the industry in 2024 until rate cuts boost consumer demand in 2025, Scotiabank adds. However, the firm anticipates product composition will be a headwind for its supplier coverage due to higher exposure to full-size models, which are declining after an extended period of outperformance and as consumers trade down to smaller vehicles.