Magna (MGA: 66.07 +1.67 +2.59%) enjoys a strong competitive position in the automotive industry by virtue of its complete range of interior and exterior auto systems. The company is strengthening its positions in the emerging markets of Asia, Eastern Europe and Russia.Magna is also poised for growth through its major business wins from original equipment manufacturers (OEMs). In the most recent quarter, the company posted a profit that was significantly higher than the Zacks Consensus Estimate.
Our long-term Outperform recommendation on the stock indicates that MGA should perform better than the overall market. Our $81 target price, 15.2X our 2010 EPS estimate, reflects this view.
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