
TSE:LNR
This summary was created by AI, based on 7 opinions in the last 12 months.
Linamar Corp, symbol LNR-T, is receiving mixed reviews from experts in the market. While some view it as a solid core holding due to its operational efficiencies and innovative technology, others express concerns regarding its valuation and exposure to geopolitical risks, particularly with CUSMA renegotiations. The stock has shown significant price rallies since April and trades at various earnings metrics, ranging from EV/EBITDA comparisons to PE ratios. Despite some analysts advising caution and waiting for a pullback due to valuation concerns, many believe the company has long-term potential in the auto parts and mobility sectors. Overall, opinions vary on the impact of tariffs and market respect for the company, reflecting a complex sentiment around its future performance.
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)
Would prefer Magna International.
Slowing consumer spending will impact business.
Cyclical business model.
Hard to predict future of business.
Not investing in the company at this time.