Magna International Inc. (MGA - Free Report) announced the addition of a vehicle manufacturing contract at its Graz, Austria facility. Under the contract, the company’s Graz facility will begin the production of BMW AG’s (BAMXF - Free Report) Z4 model by 2018 end. This marks the fifth contract acquired by Magna’s Austria facility.
The collaboration between the companies started in 2001. Later, in 2003, Magna manufactured the first BMW X3, followed by the production of a number of other BMW models. Subsequently, in 2017, the company won a contract to manufacture 530e plug-in hybrid model. Except for this, the company already has contracts to manufacture the BMW 5 Series sedan.
Apart from BMW, Magna’s Austria facility is winning many new business contracts from other companies. It received a contract to produce new Mercedes-Benz G-Class in January 2018 and Jaguar’s E-PACE model in July 2017. For Jaguar, E-PACE was the second model to manufacture in Austria, I-PACE model being the first.
Magna International Inc. Price and Consensus
With knowledge in vehicle engineering and production, acquiring such business contracts will help Magna to position itself as one of the leading contract vehicle manufacturers.
Magna is a leading manufacturer and supplier of automotive components. It offers body exteriors and structures, power and vision technologies, seating systems, and complete vehicle solutions.
In the past six months, Magna’s stock has moved up 19%, outperforming 4.2% increase of the industry it belongs to.
Zacks Rank & Other Stocks to Consider
Magna currently sports a Zacks Rank #1 (Strong Buy) while BMW carries a Zacks Rank #3 (Hold). Other top-ranked stocks in the auto space are General Motors Company (GM - Free Report) and Toyota Motor Corporation (TM - Free Report) . Presently, each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
General Motors has an expected long-term growth rate of 5.5%. Shares of the company have risen 26.4% over the past year.
Toyota has an expected long-term growth rate of 5.7%. Shares of the company have risen 24.1% over the past year.
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