Magna International Inc. (MG.TO, MGA) was upgraded to Outperform from Sector Perform at RBC Capital Markets on Friday.

Analyst Tom Narayan raised his price target on shares of the Canadian auto parts manufacturer to US$52 from US$41.

"US macro data is looking better, helped by improved dealer inventories and an anticipated EV rebound in the US and Europe in 2025," Narayan said in a note to clients.

"Magna specifically should benefit from easy comps, and we expect guidance to come in above consensus levels," the analyst said.

"December US dealer inventories improved substantially and our channel checks suggest that January US sales are holding up," Narayan said. "This could suggest that December was not simply a pull-forward of demand given election impacts."

"For the first time in months, IHSM raised its global auto production forecast in its latest revision," the analyst said. "We think this trend will continue in subsequent months, and we raise our forecast above IHSM levels for 2025."

"Finally, late-2024 EV data out of the US and Europe suggests that 2025 could be year of recovery."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)