Scotiabank Has Optimistic Outlook of MGA FY2026 Earnings

Magna International Inc. (NYSE:MGA) (TSE:MG) – Scotiabank boosted their FY2026 earnings per share estimates for Magna International in a research note issued on Thursday, February 19th. Scotiabank analyst J. Goldman now expects that the company will post earnings of $7.07 per share for the year, up from their prior forecast of $6.00. Scotiabank currently has a “Sector Perform” rating and a $69.00 price target on the stock. The consensus estimate for Magna International’s current full-year earnings is $5.87 per share. Scotiabank also issued estimates for Magna International’s FY2027 earnings at $8.73 EPS.

Magna International (NYSE:MGA) (TSE:MG) last issued its quarterly earnings results on Friday, February 13th. The company reported $2.18 earnings per share for the quarter, topping the consensus estimate of $1.81 by $0.37. Magna International had a net margin of 1.99% and a return on equity of 12.73%. The company had revenue of $10.74 billion for the quarter, compared to the consensus estimate of $10.54 billion. During the same quarter in the prior year, the company earned $1.69 EPS. Magna International’s quarterly revenue was up 2.1% on a year-over-year basis. Magna International has set its FY 2026 guidance at 6.250-7.250 EPS.

Several other equities research analysts have also commented on the stock. The Goldman Sachs Group upped their price target on shares of Magna International from $49.00 to $60.00 and gave the company a “sell” rating in a report on Tuesday, February 17th. Canadian Imperial Bank of Commerce raised Magna International from a “neutral” rating to an “outperformer” rating and boosted their price objective for the company from $56.00 to $76.00 in a report on Wednesday, February 18th. BMO Capital Markets raised their target price on Magna International from $49.00 to $52.00 and gave the stock an “outperform” rating in a report on Monday, November 3rd. Wall Street Zen raised Magna International from a “buy” rating to a “strong-buy” rating in a report on Monday, January 19th. Finally, Citigroup upped their price objective on Magna International from $49.00 to $55.00 and gave the stock a “neutral” rating in a research report on Friday, November 14th. Four equities research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $61.73.

Magna International Stock Down 2.6%

NYSE:MGA opened at $64.92 on Monday. The firm has a market capitalization of $18.10 billion, a P/E ratio of 22.01 and a beta of 1.50. Magna International has a 1-year low of $30.39 and a 1-year high of $69.94. The company’s fifty day moving average price is $55.82 and its 200-day moving average price is $50.01. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.25 and a quick ratio of 0.87.

Magna International Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Investors of record on Friday, February 27th will be issued a $0.495 dividend. This represents a $1.98 annualized dividend and a yield of 3.1%. The ex-dividend date is Friday, February 27th. This is a positive change from Magna International’s previous quarterly dividend of $0.49. Magna International’s payout ratio is presently 65.76%.

Hedge Funds Weigh In On Magna International

Hedge funds have recently made changes to their positions in the company. Plato Investment Management Ltd purchased a new stake in shares of Magna International in the 3rd quarter valued at approximately $1,880,000. ARGA Investment Management LP raised its position in Magna International by 33.2% in the third quarter. ARGA Investment Management LP now owns 4,148,133 shares of the company’s stock valued at $196,557,000 after purchasing an additional 1,033,747 shares during the period. AGF Management Ltd. purchased a new stake in Magna International in the third quarter valued at approximately $14,191,000. Meritage Portfolio Management acquired a new position in Magna International during the third quarter worth $3,551,000. Finally, Western Wealth Management LLC purchased a new position in shares of Magna International during the second quarter worth $249,000. Institutional investors and hedge funds own 67.49% of the company’s stock.

Key Headlines Impacting Magna International

Here are the key news stories impacting Magna International this week:

• Positive Sentiment: CIBC upgraded MGA to an “outperformer” (from neutral) and lifted its price target sharply to $76 (from $56), a sizable endorsement that supports further upside expectations. Article Title
• Positive Sentiment: Raymond James raised its price target to $75, adding to the sell‑side momentum behind the stock after Magna’s better‑than‑expected quarter. Article Title
• Positive Sentiment: Barclays increased its price target to $67, and analysts from Morgan Stanley and Goldman Sachs separately flagged upside potential — multiple firms now citing stronger fundamentals and forward guidance as drivers. Barclays Article Morgan Stanley Article Goldman Sachs Article
• Neutral Sentiment: Royal Bank of Canada raised its price target to $59 — an upgrade but still below recent trading levels, so its immediate impact on sentiment is mixed. Article Title
• Neutral Sentiment: Aggregated broker data still shows an average recommendation near “Hold,” indicating the analyst community is upbeat but not uniformly bullish. Article Title

About Magna International

Magna International Inc is a leading global automotive supplier specializing in the design, engineering, and manufacturing of vehicle systems, assemblies, modules, and components. Headquartered in Aurora, Ontario, the company partners with major original equipment manufacturers (OEMs) to develop technologies and solutions that enhance vehicle performance, safety, comfort, and fuel efficiency. Magna’s broad portfolio encompasses body exteriors and structures, powertrain systems, seating and interiors, roof systems, mirror systems, and advanced driver assistance systems (ADAS).

The company operates more than 350 manufacturing and assembly facilities and over 100 innovation centers across 27 countries, serving customers in North America, Europe, Asia, South America, and Africa.