Magna price target raised to $50 from $47 at CIBC

CIBC raised the firm’s price target on Magna (MGA) to $50 from $47 and keeps a Neutral rating on the shares. Strong industry dynamics over the summer contributed to Magna’s Q3 beat, and while growth continues to trend below-market, higher full-year guidance reflects confidence around execution on margin improvement, the firm says. CIBC remains on the sidelines given elevated leverage, growth headwinds, and a higher valuation relative to Canadian peers. However, it believes Magna is moving in the right direction and sees a solid risk-reward setup for the stock, which trades below historical average valuations.