Magna International, Inc. (NYSE:MGA) is one of the best electric vehicle supply chain stocks to buy right now. On August 26, CIBC analyst Ty Colin reaffirmed his Neutral rating on Magna International, Inc. (NYSE:MGA) and raised his 12-month price target slightly, from $46 to $47. As of September 5, the stock was trading at $45.46. The new target reflects a modest potential upside of 3.3%.
Colin pointed to a more stable outlook for the U.S. auto supply chain, noting that fears around new tariffs, particularly those tied to electric vehicle components and trade with China, have started to ease. He also noted that many of the challenges facing the auto sector, such as weaker EV demand, economic uncertainty, and ongoing supply chain issues, appear to be already factored into current valuations.
Despite this, the analyst continues to take a cautious stance. Magna’s forward P/E ratio of 9.78 might appear attractive, but that could represent a value trap given the low upside potential. Analysts may need more concrete signs of improving margins or consistent top-line growth.
While we acknowledge the potential of MGA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
