Massive increase in auto production in North America. Supply to GM and Ford growing rapidly. Very good company that is a good long term hold. Expecting a $100 share price.
Stockchase Research Editor: Michael O'Reilly The company has navigated tough cost of production issues, but has had increasing success in the area of EVs. This is leading to growing free cash flow (which they expect to continue in 2023) as they aggressively retire debt. It trades below book value and only 11x earnings. We recommend placing a stop loss at $54.50, looking to achieve $77 -- upside potential over 19%. Yield 1.2% (Analysts’ price target is $76.75)
(A Top Pick Apr 05/22, Up 22%) Key driver: a company less impacted by supply constraints around the world, particularly Europe. That's why he bought it. However, they could suffer if there's a deep recession in 2023. Fundamentals remain rock solid. Will emerge strong after a recession, if it happens.
Strong CEO, very well run. Likes the auto parts space. Supply chains should get unclogged, and LNR has a nice backlog, earnings will stabilize. Diversified business with agriculture and Skyjack, so he prefers it to MG and MRE. Valuation lower than normal.
Auto-part company that is well diversified.
Does not own shares in the company.
Traditionally sector has under preformed.
Semi-conductor/chip industry shortage also tough on business.
(A Top Pick Nov 15/21, Down 18%) Been around for decades. Sharp pullback. If it could just have a normal year without all the headwinds, EPS would be about $10. Insider buying. Riding EV wave. 71% of new business is for EVs.
Covid spurred a generational pulling forward of demand for cars, prices skyrocketed. Demand has been downhill since. Auto parts are amazing early cycle performers. He'll get back to the space when the time is right.
(A Top Pick Nov 12/21, Down 24%) Lots of backlog not yet pulled through. Recession will impact the stock price, but not the underlying business so much. As supply chains and chips free up, should have outsized returns compared to expectations. Pricing power on the agriculture side.
Cyclical, times to avoid. Now cheap enough to buy. Automakers faced a lot of headwinds. Auto parts and industrial components. Less than 12x PE, no net debt, balance sheet looks great, insider buying. Price momentum starting to look higher. Economic slowdown could grease the wheel of supply chains to fulfill huge backlog. Yield is 1.30%. (Analysts’ price target is $80.00)
She doesn't own any auto parts suppliers, They are indirectly suffering from the shortage of semiconductors which is delaying car production. Of the three, she prefers Linamar for its global presence.
Very strong management team that is upfront and consistent.
Business misunderstood by the market.
Very positive on the outlook of the auto industry.
Chip shortages are starting to resolve themselves.
Great balance sheet and backlog of orders.
Current share price presenting good buying opportunity.
Linamar Corp is a Canadian stock, trading under the symbol LNR.TO (previously LNR-T on Stockchase) on the Toronto Stock Exchange (LNR-CT). It is usually referred to as TSX:LNR or LNR.TO
Is Linamar Corp a buy or a sell?
6 expert ratings on Linamar Corp (LNR.TO) in the last 12 months: 5 Buy, 0 Hold, 1 Sell. Latest rating: PAST TOP PICK by The Panic-Proof Portfolio (Stockchase Research) on Feb 14, 2023. Read the latest stock experts' ratings for Linamar Corp.
Our PAST TOP PICK with LNR is progressing well. To remain disciplined, we now recommend trailing up the stop (from $54.50) to $62.00.