UPDATE: J.P. Morgan Downgrades Magna International to Neutral

According to J.P. Morgan, Magna International

is downgraded to Neutral. J.P. Morgan said that it downgrades MGA from Overweight to Neutral primarily on valuation grounds after its recent rally and because company comments at and since the Detroit Auto Show suggest weaker-than-expected medium-term revenue growth potential and margin expansion pace. “Our revised estimates are 5-10% below current Bloomberg consensus ests. Our revised Dec-2012 price target of $48 ($54 earlier) suggests a modest 14% upside vs. current stock price – most of our Overweight rated stocks have 30%+ upside to our price target. New PT is based on an unchanged 10x P/E applied to our revised 2013e EPS.” Magna International closed yesterday at $41.99.