Linamar Corp (LNR.TO) Buy, Sell or Hold

Linamar Corp (LNR.TO)

96.20

-3.39 (3.40%)

as of Sep 18, 2026, 8:00:01 pm Market Open.

359 watching

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)

PAST TOP PICK

(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.

BUY

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.

DON'T BUY

Defensive stock? He does not own this as he sees the auto space being challenged -- especially the parts manufacturers. The only thing positive is their valuation. A better defensive holding would be something that pays income. (Analysts’ price target is $51.00)

COMMENT

LNR vs MG vs MRE? The auto parts sector has had headwinds. He would stick with MG-T as they pay the highest dividend. He would have thought LNR-T would have been more defensive, but an acquistion in the agricultural space has proved to be a failed attempt to diversify. All three look very cheap. He does own MG-T.

DON'T BUY

He has been cautious around the auto sector. Demand was flat to down last year. There is demand headwind and the transition to electric vehicles. It's going to be a challenging period. It is a well run business but there are too many headwinds.

TOP PICK

They have been diversifying their business away from solely auto parts. They have been challenged by a stressed business for auto parts, particularly in Germany. A lot of these issues have been factored in. Trades at 6 times earnings and 8 times cash flow. One knock against them was the level of debt incurred to buy into an agricultural based investment. In-siders have been strong buyers. Yield 1.0% (Analysts’ price target is $52.00)

TOP PICK

One of his favourite Canadian companies. They have products for electric vehicles. They make all the transmissions for Ford and GM for pickup trucks, which will not move to electric any time soon. (Analysts’ price target is $51.67)

PAST TOP PICK

(A Top Pick Mar 11/19, Down 4%) Auto sales for new cars are slightly down and this hurt the sentiment for the whole segment. He probably recommended it a little too early. Despite the difficult environment, sales were up and they took market share. 6.5 times earnings. It is quite inexpensive to own. There is talk that America 'peaked-out' in autos in 2016. The two car family is becoming less popular.

COMMENT

Auto stocks are seasonal from March-mid-July. There's nothing overly negative with LNR until then. Technically, this has been in a long-term downtrend, this and the whole auto space given sagging car sales. There's a bump at Christmas time for auto-related, though. Momentum is waning to the downside, which is positive. Maybe we're finding a bottom. LNR has to break above $45 which may mark a rebound rally. Cheap valuation.

PAST TOP PICK

(A Top Pick Nov 18/18, Down 6%) This is a stock that can double. Electric vehicle technology. Continues to gain market shares and is extremely well managed. They are building a company for the long term. A year or so is disappointing but he would just buy more. Thinks it will go to a new peak sometime in the next 5 years.

COMMENT

It’s a classic cyclical stock. It’s very cheap right now. It’s an auto company so if there is a slowdown or recession, then it could be hit.

DON'T BUY

Trades at a low multiple like all auto parts companies. But cars have plateaued. In this space, she prefers Magna. But overall, the end market is slowing. She'd keep an eye on car demand in Europe and China, but it's flat in North America.

DON'T BUY

He owned it earlier this year. He thought it would benefit when the North American Free Trade Agreement would be approved. That didn't quite materialize in the time line he expected. He thinks there may be better plays in the auto parts area.

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Linamar Corp (LNR.TO)