Stock price when the opinion was issued
It won't pull back much from here. Given tariffs, this space is uncertain, but eventually we will settle this tariff war. Auto manufacturing is so emeshed between both countries that it would take a very long time to rejig it. This or Linamar are fine, but Magna pays a higher PE, though trades at a higher price-to-book. Your horizon must be long to own this, like 3-4 years.
Very hesitant. Recent recovery has been sharp and quick, almost as though it's factoring in abolition of tariffs completely. We need more clarity on tariffs. Auto industry is highly cyclical and depends on health of the economy, and we're seeing signs of weakening.
If you own it, don't need the cash, and have a 5-10 year time horizon, you should be fine. But there could be further weakness from here.
This is a global business. It has lots of business in Europe. It’s the largest, independent, complete vehicle assembler. They are putting whole cars together. They're going to grow the business 25% a year over the next 3 years. It is growing at a faster growth rate than the industry by about 25%, but trading at a discounted earnings multiple to the industry, so it's cheaper, but growing faster. He would be comfortable owning this.