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.