TSE:LNR

Linamar Corp (LNR.TO)

101.13
-2.24 (2.17%)
as of Jun 10, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 10, 2026, 12:00 am

This summary was created by AI, based on 7 opinions in the last 12 months.

Linamar Corp (LNR-T) has received a range of expert opinions with a balanced sentiment overall. Several analysts commend the company's solid operational management and its ability to potentially withstand tariff impacts stemming from geopolitical tensions, particularly regarding CUSMA. They highlight Linamar's effective production efficiencies and strong technology offerings, especially in automotive parts, as key strengths. However, concerns have arisen about the valuation, with some experts noting that it was phenomenally cheap at about 3x EV/EBITDA at one point, while others believe the current price levels are not inexpensive. A recurring theme is the uncertainty surrounding future trade agreements and their potential impact on the stock's performance, with some experts advocating for a wait-and-see approach regarding buying opportunities.

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Consensus
Mixed
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Valuation
Fair Value
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PAST TOP PICK
(A Top Pick May 30/18, Down 23%) He still owns it and is looking for $80s/90s in the next 3 to 5 years. There is a move to 9-10 speed transmissions from 4-5 speed for improved gas mileage and this gives them a higher content in cars. It is a great company with an incredible future.
BUY
He's long owned this and likes it. Are we in peak auto now? Car stocks have come off--and that's overdone. Markets are growing rapidly, though China is making its own auto parts. That said, this space and stock are safe for now.
DON'T BUY
He is concerned that this company can be disrupted along with the space. The debt level of the company is a little higher than the one he is comfortable with. The company is doing the right things, but if the industry in general shrinks it will be affected.
BUY
There are all kinds of good things about this company. After NAFTA was agreed upon the stock has gone down. Issues in Europe should have been short term. It is perceived as the smaller of the auto parts companies. But it should be viewed as a metallics manufacture. They make products for oil and gas, aerial lifts and agriculture. They are reporting after market close today.
TOP PICK
He is staying with it. Revenues and earnings have doubled in the last 5 years but the stock is back to where it was 5 years ago. The multiple has shrunk. The CEO just bought 50,000 shares. (Analysts’ price target is $58.25)
WAIT
Wait till they report on Monday, especially given that GM exited Oshawa. The auto sector still doesn't know what's going to happen to the new NAFTA until iron and aluminum tariffs come off. It could take a month or two, but wait.
BUY
You need to own Magna or Linamar, cheap names. Yes, they're cyclical and there's talk of auto sales rolling over and e-cars, but he doesn't believe those fears. These companies continue to put up impressive numbers and are still growing 5% on the topline. They're well-run and diversified. He's not worried about this sector. Insiders are buying their own stocks. Linamar has a great CEO.
DON'T BUY
She thinks the auto sector in the US has peaked. The space is trading at low multiples, but this is normal based on the cyclical nature of the sector.
PAST TOP PICK
(A Top Pick Mar 20/18, Down 33%) He has owned it since it went public. It has had a lot of ups and downs but is an incredibly well managed company. They have lift access as well as farm machinery businesses in addition to auto parts. He would not hesitate to buy it.
DON'T BUY
He thinks the market is telling you the car market cycle is coming to an end. The move to electric vehicles and car production not likely ever making new highs worries him. It has about 100% upside in value, but he cautious of the cycle nature. He would be careful.
BUY
NAFTA 2.0 will benefit Linamar. Its industrial side is doing well. Extremely cheap, and is going to earn some crazy earnings like $8 EPS.
WAIT
He owned this for a while, but was never a long term investor. When the Free Trade Agreement was redone he was hoping for a rebound. When the stock actually went down, he sold out. The US President was not expected to put extra tariffs on Canadian parts. The company is excellent and the long term outlook is good. He would wait for despair in the auto sector before buying.
BUY
LNR-T vs. MG-T. MG-T is the third largest global auto parts manufacturer on the planet and so are very dependent on the growth of autos. He thinks worries about ride-share taking over and reducing auto ownership are over grown. LNR-T is concentrated within the drive-train of the vehicle. They are capturing market share globally and own the industry in North America. Electric vehicles will have no gears in them, but LNR-T will build drive trains for electric autos. They also own two other businesses: Skyjack, and a farm machinery business they acquired last year. LNR-T can grow faster when the businesses are booming, but MG-T has less debt.
COMMENT
It is trading about 5 times earnings. It is down because of strict testing requirements in Europe. There is a feeling that auto sales have peaked in North America. However, LNR-T's business model is to build more and more of the car.
BUY
Autos are under pressure now given US trade issues. The USMCA may not be good for Canadian auto companies. He has long owned and likes it a lot. They have a diversified and efficient production base. One of the best companies in the auto sector. We could be in an extended auto war between China and Europe vs. US.
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