TSE:LNR

Linamar Corp (LNR.TO)

100.57
+1.52 (1.53%)
as of Jun 30, 2026, 8:00:01 pm Market Open.
359 watching
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Investor Insights
star iconJun 30, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Experts are generally optimistic about Linamar Corp (LNR-T), highlighting its solid operational capabilities and the potential for resilience against tariffs, particularly if CUSMA remains unchanged. Notably, some analysts mention that the company's valuation, while improved, remains phenomenally cheap at around 3x EV/EBITDA. There is a consensus that, despite concerns regarding the Canadian manufacturing sector amidst geopolitical changes, Linamar showcases strong fundamentals, including robust earnings and innovative technology in auto parts and mobility. While some experts express caution due to the stock’s rising price and valuation metrics, they acknowledge its status as a core holding for investors looking for growth amidst market uncertainties. Overall, the sentiment reflects a mixture of confidence in the company’s business model and a watchful stance regarding valuation corrections.

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Consensus
Positive
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Valuation
Undervalued
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Magna,MGA
PAST TOP PICK
(A Top Pick Dec 01/20, Up 26%) Pummeled by chip shortage. Paid off all debt. Analysts have price target of $100. Well positioned in both fuel and electric vehicles.
TOP PICK
Since 2017 they had the GM strike, COVID and then supply chain shortages and this brought the ROE down to 10%. Since then they have generated significant cash flow, grown their asset base and their shareholder equity so if they had a normal year and got back to 15% ROE then it would result in an additional $10.50 per share in earnings and at ten times earnings that is $105.00. Senior insiders are buying it up. (Analysts’ price target is $96.00)
TOP PICK
The auto parts were a sector at the top of their list. Demand for cars is still hot. Best in class operators in the auto space. The CEO has done a great job at managing this business. Has outperformed competitors. There will be years of demand on this great backlog. Valuation is at 4-4.5x EBITDA. With a series of earnings beat, it could trade at 6x. Excited for the future prospects. (Analysts’ price target is $96.00)
WEAK BUY
Like his MG-T comment today, but the valuation is not quite as attractive. He is not sure about the drive-train exposure. He is fine with the overall group however.
PAST TOP PICK

(A Top Pick Dec 01/20, Up 2%) He would buy it again. He thinks it is worth $100 or more. It may be caught up in the global semiconductor shortage. They have had significant wind in electric and hybrids. The skyjack division is a big company and one of their biggest customers is United Rentals and it has been flying. The LNR-T stock is cheap on a statistical basis.

TOP PICK

2019 was affected by a GM strike. In 2021 it is shaping up to be a full recovery as each of their three businesses are coming back. Insider buying activity further reinforces his positive view. (Analysts’ price target is $100.40)

TOP PICK
There could be some volatility. It is benefiting from the trade into early re-opening. They have had some time to get very fit, operationally. She thinks it has legs, although could be choppy here. It is a good part of the market to have exposure to. (Analysts’ price target is $100.40)
DON'T BUY
A cyclical company. Their metrics show fluctuating returns on invested capital; free cash flow (which he values highly) has been negative at times. Because of the latter, he doesn't own this. Also, we're late cycle in car demand, which directly effect LNR's business.
PAST TOP PICK

(A Top Pick Aug 24/20, Up 72%) Really well positioned. Build all transmissions for GM and Ford. Into EV and growing rapidly.

DON'T BUY

The car parts suppliers trade at low PEs, but are vulnerable to the auto cycle. Good news is that car demand has picked up faster than expected. She owns none of these stocks, but Magna is best in this class, given its global platform and recent performance.

PAST TOP PICK

(A Top Pick Jan 02/20, Up 49%) Car sales are booming now. LNR has an incredible business with technology so sound that Ford and GM trust them to make the new 9- and 10-speed transmissions for their pick-up trucks. LNR is also exposed to the agriculture boom. He targets LNR over $100.

DON'T BUY
Auto parts stocks can be value traps. They often have high ROE, low debt. Problem is they're cyclical, depending on how auto sales are doing. Feast or famine. He prefers companies that can increase earnings through thick and thin. Be very careful. Not long-term holdings, they're rentals.
TOP PICK
Great story. Multi-industry company. As the economy opens, they'll do well. Technical knowledge is very high. Have won major EV contracts. Scissor lifts, farm machinery. Will move into the $80-100 range. Yield is 0.80%. (Analysts’ price target is $66.17)
TOP PICK

His favourite manufacturing stock. LNR makes transmissions for Ford and GE pick-up trucks, so they're at the forefront for the car industry. They also have products for e-cars, like an electric axle. Their SkyJack division is rebounding with the construction business, and their fire machinery business is positioned well in the coming recovery.

TOP PICK
It was a long for him in the 2013/14 period of time. It has gotten to the point now that it has priced in a lot of the economic slowdown. It scores in the top 1% in valuation. They are somewhat diversified. 6.5 times price to earnings. They could turn into more of a yield stock. It is a call on valuation and a call on coming out of this recession. The balance sheet is not a concern even if they are a little heavy on debt. (Analysts’ price target is $38.17)
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