Magna International's (MGA) potential divestment of its Seating business is now less likely given the macro uncertainty, RBC Capital Markets said in a client note.
RBC analysts in January upgraded the stock anticipating an imminent sale of the Seating business, but now believe it is not high on the agenda on the company's management given the market volatility.
Tariff implications could be severe for Magna, the analysts said, as they expressed concern about a weaker production outlook. Ford and Stellantis "intentionally cutting wholesales to manage their dealer inventories" could also result in headwinds for the company in Q1, they added.
RBC downgraded the company's stock to sector perform from outperform and lowered the price target to $32 from $51.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。