Core Viewpoint - Magna International Inc. is experiencing a positive shift in analyst sentiment, reflected in the rising consensus price target, indicating expectations of growth or stability in its stock price [2][4][6] Group 1: Analyst Sentiment and Price Targets - The average price target for Magna has increased from $50 a year ago to $61 last month, showing significant growth in analyst confidence [4][6] - Three months ago, the average price target was $58.29, indicating a gradual increase in confidence regarding Magna's performance [3][6] - Citigroup analyst Itay Michaeli has set a price target of $81, suggesting potential for substantial stock price growth [2][6] Group 2: Earnings Expectations - Analysts anticipate that Magna will exceed quarterly earnings estimates, supported by the Zacks Earnings ESP tool [5] - The upcoming earnings report is expected to reflect positive growth, reinforcing the bullish outlook among analysts [4][5] Group 3: Competitive Position - Magna competes with major players like Continental AG and Bosch, offering a wide range of products and services in the automotive industry [1]

Core Viewpoint - Magna International Inc. is a leading global automotive supplier with strong anticipated growth in its Power and Vision segments, which is expected to positively impact its upcoming earnings report [1][2][6] Financial Performance Expectations - The company is set to release its quarterly earnings on February 13, 2026, with Wall Street forecasting an earnings per share (EPS) of $1.81 and projected revenue of approximately $10.54 billion [2][6] - There is high anticipation that Magna will surpass these earnings estimates due to robust performance in its key segments [2][6] Competitive Landscape - In comparison to competitors, AAP is projected to achieve a significant 136% growth in EPS, while its revenues may decline by 2%, and DCH is expected to report a wider Q4 loss despite an increase in revenue [3] - These mixed results among competitors highlight the importance of Magna's upcoming earnings report in influencing investor sentiment [3] Financial Metrics - Magna's price-to-earnings (P/E) ratio is approximately 15.76, indicating that investors are willing to pay $15.76 for every dollar of earnings [4][6] - The company's price-to-sales ratio is about 0.39, suggesting a relatively low valuation compared to its sales [4] - The enterprise value to sales ratio is around 0.54, reflecting its total valuation in relation to sales [4] - The enterprise value to operating cash flow ratio is approximately 6.35, indicating efficient cash flow conversion [5] - Magna's debt-to-equity ratio is about 0.59, showing a moderate level of debt compared to equity [5] - A current ratio of 1.18 suggests reasonable liquidity to cover short-term liabilities [5]

Core Insights - The fourth-quarter earnings season for the Auto-Tires-Trucks sector has shown mixed results, with Ford disappointing, General Motors exceeding estimates for the 14th consecutive quarter, and Tesla surprising with a significant capex plan exceeding $20 billion for the year [1] Industry Overview - The U.S. auto industry experienced a slowdown in the fourth quarter, with vehicle sales dropping to an annualized pace of 15.6 million units from 16.4 million in the third quarter, marking the weakest period of the year [3] - Tariffs on imported vehicles and components have increased costs for automakers, contributing to profitability pressures, while inflation has affected both manufacturers and consumers [4] - The electric vehicle market saw a significant decline in demand, with EV sales falling to 234,000 units in the fourth quarter, down 46% sequentially and 36% year-over-year [5] Company-Specific Insights Advance Auto Parts (AAP) - AAP is expected to report earnings with a consensus estimate of 43 cents per share, indicating a 136% year-over-year growth, while revenues are projected to decline by 2% to $1.95 billion [10] - The company has an Earnings ESP of -2.14% and a Zacks Rank of 3, suggesting uncertainty regarding an earnings beat [7] - AAP's comps growth is estimated at 2.23%, compared to a decline of 1% in the same quarter of 2024 [8] Magna International (MGA) - MGA is predicted to report earnings with a consensus estimate of $1.81 per share, reflecting a 7% year-over-year growth, while revenues are expected to decline by 1% to $10.5 billion [13] - The company has an Earnings ESP of +3.87% and a Zacks Rank of 3, indicating a favorable outlook for an earnings beat [11] - The Power & Vision segment is anticipated to contribute positively, with revenues expected to rise to $3,796 million from $3,786 million in the previous year [12] Dauch Corporation (DCH) - DCH is forecasted to report a loss of 7 cents per share, representing a 17% year-over-year deterioration, while revenues are expected to grow by 2% to $1.4 billion [16] - The company has an Earnings ESP of +124.47% but a Zacks Rank of 4, indicating challenges in achieving an earnings beat [15] - Management has highlighted several headwinds for the fourth quarter, including normal seasonality and production volatility [15]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Magna (MGA) despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Magna is expected to report quarterly earnings of $1.81 per share, reflecting a year-over-year increase of +7.1% [3]. - Revenues are projected to be $10.48 billion, which is a decrease of 1.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.11% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Magna is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.87% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Magna currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Magna exceeded the expected earnings of $1.24 per share by delivering $1.33, resulting in a surprise of +7.26% [13]. - Over the past four quarters, Magna has beaten consensus EPS estimates three times [14]. Industry Context - Another player in the automotive supply industry, BorgWarner (BWA), is expected to report earnings of $1.16 per share, with a year-over-year change of +14.9% and revenues of $3.51 billion, up 2.1% [18][19]. - BorgWarner also has a positive Earnings ESP of +2.61% and a Zacks Rank of 3, suggesting a likelihood of beating consensus EPS estimates [20].

Core Viewpoint - Magna International Inc. is considered one of the most undervalued Canadian stocks, with multiple analysts raising their price targets amid concerns over increased vehicle production costs due to tariffs expected to impact consumers and suppliers in 2026 [1][2][3]. Group 1: Analyst Price Target Adjustments - Scotiabank analyst Jonathan Goldman raised the price target for Magna to $57 from $52 while maintaining a Sector Perform rating, highlighting potential risks to production volumes that affect supplier earnings [1]. - Barclays analyst Dan Levy increased the price target for Magna to $58 from $52 with an Equal Weight rating, favoring vehicle manufacturers over suppliers due to stable production rates and reduced losses in electric vehicle programs [2]. - Goldman Sachs raised the price target for Magna to $68 from $60 with a Sell rating, reflecting recent automotive sales data and supplier comments regarding growth expectations for 2026 [3]. Group 2: Company Overview - Magna International Inc. manufactures and supplies vehicle engineering, contract, and automotive space, operating through four segments [4].

Group 1 - Lear (LEA) has secured GM's (GM) T1XX program at Orion, with production set to start in 2027, which was largely anticipated but not previously included in backlog [1] - The win is considered neutral to slightly positive for Lear but negative for Magna (MGA), which previously operated the facility [1] - UBS maintains a Neutral rating on Lear shares with a price target of $135 [1]

Core Viewpoint - Magna (MGA) is positioned to potentially continue its earnings-beat streak in the upcoming report, supported by a strong earnings history and positive analyst sentiment [1]. Earnings Performance - For the last reported quarter, Magna achieved earnings of $1.33 per share, exceeding the Zacks Consensus Estimate of $1.24 per share, resulting in a surprise of 7.26% [2]. - In the previous quarter, Magna's earnings were $1.44 per share against an expected $1.19 per share, delivering a surprise of 21.01% [2]. Analyst Sentiment - Recent estimates for Magna have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) indicating a favorable outlook for earnings performance [5]. - The current Earnings ESP for Magna is +3.87%, suggesting that analysts are optimistic about the company's near-term earnings potential [8]. Zacks Rank and Predictive Power - Magna holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, indicates a high likelihood of another earnings beat [8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time [6].

Core Viewpoint - Magna International Inc. is set to announce its Q4 and year-end 2025 results along with its 2026 outlook during a live audio webcast on February 13, 2026, at 8:00 AM ET [1]. Group 1: Event Details - The live audio webcast registration is available online [1]. - Participants can join the call using toll-free and toll dial-in numbers, with a specific conference ID provided [2]. - A slide presentation will be accessible on the company's investor relations website prior to the call [2]. Group 2: Rebroadcast Information - A replay of the call will be available two hours after the live event until February 20, 2026, with dedicated dial-in numbers for the rebroadcast [2]. Group 3: Company Overview - Magna International is recognized as one of the largest automotive suppliers globally, serving major markets including North America, Europe, and China [3]. - The company operates in 28 countries, leveraging its extensive experience and manufacturing expertise to deliver high performance, safety, and quality in vehicle systems [3].

Core Insights - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks [2] Company Analysis - Magna International (MGA) is currently rated with a Zacks Rank 2 (Buy) and has received an A grade for Value, indicating strong potential for value investors [4] - MGA's P/E ratio stands at 8.47, significantly lower than the industry average of 18.18, suggesting that the stock may be undervalued [4] - The Forward P/E for MGA has fluctuated between 5.65 and 8.47 over the past year, with a median of 6.79, indicating a stable earnings outlook [4] - The P/S ratio for MGA is 0.38, compared to the industry average of 0.79, further supporting the notion that MGA is undervalued [5] - Overall, MGA's metrics indicate it is one of the strongest value stocks in the market, particularly when considering its earnings outlook [6]

Core Insights - Magna has announced an expansion of its strategic partnership with NVIDIA to support automakers in implementing projects based on the NVIDIA DRIVE Hyperion platform, facilitating the automotive industry's transition towards intelligent and software-defined vehicles [1] - The collaboration focuses on providing a comprehensive service solution that includes system integration, functional validation, and mass production support for various levels of autonomous driving systems [1][3] Group 1: Partnership Details - The partnership combines NVIDIA's AI computing power with Magna's expertise in system engineering and integration validation, enhancing the capabilities of the DRIVE AV autonomous driving software stack [3] - Magna offers flexible service options for automakers, allowing them to select full or partial system-level services, which include system integration coordination, comprehensive performance testing, and global deployment support [3] Group 2: Technological Advancements - The NVIDIA DRIVE AV software stack covers essential functions such as emergency braking, lane keeping, and parking assistance, while also integrating advanced modules for urban road autonomous driving [3] - Magna's global manufacturing and engineering capabilities enable full-process support for system mass production, particularly focusing on high-performance computing control units and sensors that are critical to system functionality [3] Group 3: Executive Perspectives - Executives from both companies have praised the partnership, highlighting Magna's role in helping automakers scale integrated systems and accelerate the marketization of next-generation technologies [4] - The collaboration is seen as a testament to the expanding ecosystem of AI-defined vehicles, with Magna's hardware compatibility and integration validation capabilities aiding automakers in the development of multi-level autonomous driving systems [4]