S&P Gears Up Magna International (MGA) to Buy

S&P raised automotive supplier Magna International (NYSE: MGA) to Buy From Hold in the Aug. 18, edition of the Outlook. Magna blew out the numbers in their latest earnings report. The stock is trading today near its 52 week high of $81.24. Today a Canadian court approved Magna's plan to collapse their dual class share structure.

Here are quotes from the S&P report:

"Magna posted adjusted second-quarter earnings per share (EPS) of $2.78, well above our $1.12 estimate. We raised our 2010 EPS estimate by $3.01 to $7.63 on an increase in our sales and margin forecast. We expect greater global production through 2011, with higher Magna content per vehicle, and expect Magna to increase its nvestments outside its core North America and Europe markets. Our 2011 EPS estimate is $8.02. We raised our target price by $31 to $110, based on historical and peer P/E analysis."

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