Magna Surges to Record High on Sales Outlook: Toronto Mover
Magna International Inc., North America’s largest auto-parts maker, soared to a record after raising its 2013 sales forecasts and posting earnings that beat analysts’ estimates.
Magna climbed 3.9 percent to C$65.67 at 11:32 a.m. in Toronto, after reaching C$66.45, the highest since at least September 1988, according to data compiled by Bloomberg. Earlier, the Aurora, Ontario-based company rose as much as 5.1 percent.
“European margins look like the biggest positive area,” David Tyerman, a Toronto-based analyst at Canaccord Financial Inc, said in a research note today. “This is a very strong performance given the weakness in the European auto industry.”
Tyerman, who rates Magna a buy with a $64 target, said that may reflect Magna’s exposure to stronger companies such as Daimler AG, maker of Mercedes-Benz, Bayerische Motoren Werke AG and Volkswagen AG.
Magna raised its 2013 revenue expectations to $32.6 billion to $34 billion, compared with an earlier forecast of $32 billion to $33.4 billion in March. Magna now expects its operating margin will be in the mid-to-high 5 percent range, compared with earlier estimates of mid 5 percent.
Magna reported first-quarter net income of $1.57 a share compared with $1.46 a year earlier and ahead of the $1.45 average of nine estimates compiled by Bloomberg. Sales rose 9.1 percent to a record $8.36 billion from the year-ago quarter.
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