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TSE:LNR
This summary was created by AI, based on 7 opinions in the last 12 months.
Linamar Corp (LNR-T) has garnered positive reviews from several experts, highlighting its $2 billion capacity for acquisitions which may lead to growth in a distressed automotive supplier landscape. Analysts praise its strong operational performance and the company's ability to manage supply chain challenges linked to regulations, such as CUSMA. Despite concerns over potential tariffs, the company is viewed as a survivor with commendable execution, contributing to revenue increases of 14% this year. While some analysts see the stock as fairly valued, others suggest it might be prudent to wait for a pullback given its price appreciation over recent months and the ongoing geopolitical uncertainties.
(A Top Pick May 21/19, Down 25%) Last year, trade tensions between US and China hurt their business, because 10% of their business is agricultural equipment and that trade war hurt agriculture. The GM strike also hurt. There was insider buying over the winter, which is a plus. The virus has made this a buying opportunity now. A solid hold for him. Peak auto has hit the world, yes, but those declines in sales have been gradual.
Magna He owns Linamar instead. Both are suffering from perception with EPS plunging--car sales have peaked and there are fears that ride sharing will dominate more. Will people keep buying new cars? If so, these companies will do well. But both are great companies that should grow market share by acquisition and diversifying their businesses.
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.