Evercore downgrades Magna International on Fisker headwinds, cuts PT
15/04/2024 12:53
** Evercore downgrades auto supplier Magna International
MGA.N to "in line" from "outperform", cuts PT to $62 from $75
** "A continued difficult 'story' into 1H of the year" for
Magna - Evercore
** Magna faces near and medium-term earnings hits due to
lower production at its Steyr plant in Graz, Austria, that makes
Ocean EVs for Fisker
** Magna's Steyr plant has a deal with Fisker to manufacture
up to 120,000 Ocean EVs a year
** Fisker has flagged substantial doubt about its ability to
continue as a going concern and is searching for strategic
options as it struggles to raise funds
** Brokerage expects Steyr production to be down and a
potential $100-120 mln hit to earnings from Fisker
** "Until the FSR risk clears, MGA is likely a tactical
underperform ahead before a 2H turnaround," - Evercore
** Up to Friday's close, stock had ~16% YTD
(Reporting by Kannaki Deka)
((Kannaki.Deka@thomsonreuters.com))