In my experience, I find that one or two magnetic hits can cripple and on rare occasions even sink a battleship. I have also witnessed battleships/battlecruisers sail on after taking up to four contact hits (albeit with a heavy list). With magnetic pistols, a depth setting of one metre under keel depth usually succeeds, in heavy seas I set depth to around two metres under.
When targeting merchant ships, I tend to stick with contact pistols. The greater damage a magnetic hit inflicts outweighs the fact that most merchants don't survive two contact hits anyway.
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