Why did MG.TO jump about 18% today?

Shares rallied after management guided 2026 adjusted EPS to US$6.25–US$7.25 and announced new European assembly work for Chinese EV brands Xpeng and GAC. Investors saw clearer margin recovery and better asset utilization. A small Q4 loss, linked to a recall settlement and costs, appeared manageable, keeping the focus on future execution and program ramps.

Is Magna stock expensive after the rally?

At roughly 18.9 times trailing EPS of 4.95, valuation is fair for a global Tier-1 with improving margins and a 2.9% dividend yield. Price-to-sales near 0.47 and price-to-book around 1.56 suggest it is not stretched versus history. However, RSI is overbought, so near-term pullbacks would not surprise.

What could the Xpeng and GAC contracts add?

The Graz contracts can lift volumes, improve factory utilization, and create content opportunities across other segments. They also diversify customers and strengthen European EV exposure. The real benefit depends on ramp timing, build schedules, and follow-on awards. Smooth launches would support margins and validate the 2026 earnings guidance.

What are the key risks to watch for MG.TO now?

Watch EV demand in Europe, launch timing for new programs, and any policy changes affecting Chinese brands. Cost inflation and program mix can pressure margins. Technicals show overbought conditions, adding near-term volatility risk. Clear updates on ramps, pricing, and costs at the April 30 earnings date will be important.

Global Market Insights

MG.TO Stock Today: February 14 – 18% Jump on 2026 Profit Outlook

ByDanny Kontos February 14, 2026February 14, 2026

Magna stock surged after the company guided 2026 adjusted EPS to US$6.25–US$7.25 and announced new European assembly work for Chinese EV makers Xpeng and GAC. Shares of MG.TO jumped about 18% today in Toronto, drawing fresh interest from Canadian investors focused on auto suppliers and EV exposure. We look at what drove the move, how the new contracts may shape growth, where the valuation stands, and what to watch into the next earnings update.