
TSE:LNR
This summary was created by AI, based on 7 opinions in the last 12 months.
Linamar Corp (LNR-T) has garnered positive sentiment from various experts despite recent price increases. They highlight the company's solid revenue growth, with a 14% increase this year, and commend its operational efficiencies, especially in managing regulatory challenges like CUSMA. While some analysts express concerns about the overall valuation and potential geopolitical risks, many still view it as a core holding due to its strong technology and position in the automotive supply chain. The consensus is that while the stock has rallied recently, it may still offer an opportunity for investors if there’s a price pullback. Overall, the company's strategic partnerships and production efficiencies provide a strong foundation for future growth.
Stock looks great, and wanting to take out the highs of 2021. Bottomed before the market did last October, which is really positive. Higher highs, higher lows. Let the stock run. If it can take out $80, the next level is $100. Hold, even though the toughest thing to do is nothing.
LNR has a good balance sheet, but it does have about $500M net debt, which is about 1X cash flow. We like the company and the low valuation of 7X earnings, and like management. 2023 growth is expected to be above 30%, and 2024 in the 15% range, based on current estimates. We think there is upside here over five years, but in a cyclical industry a double may be pushing expectations a bit.
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No debt. Massive growth potential. Double-digit revenue and earnings growth. Growing 15-20% over the next few years. Lots of orders for electric and hybrid vehicles. Dirt cheap. Auto parts are early-cycle winners. So once a recession is "declared", look for these stocks to take off. Yield is 1.38%.
(Analysts’ price target is $87.80)
With recently reported EPS growth of 55%, we again reiterate LNR as a TOP PICK. EV sales business segment represents 60% of business by 2027 in their long term plans. We like that cash reserves are growing, while the company still trades under book value and at only 11x earnings. We recommend trailing up the stop (from $60) to $65, looking to achieve $87 -- upside potential of 18%. Yield 1.1%
(Analysts’ price target is $87.80)