Electric cars will push Linamar higher

Article Excerpt

Linamar’s shares are now up over 200% from their low of $24.57 on March 23, 2020. That reflect rising demand for new cars following COVID-19 lockdowns. Even after that big gain, the stock is poised to keep moving higher, particularly as Linamar’s expertise helps automakers pivot to electric and hydrogen-powered vehicles. LINAMAR CORP. $74 remains a buy. The company (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 65.4 million; Market cap: $4.8 billion; Price-to-sales ratio: 0.8; Dividend yield: 0.9%; TSINetwork Rating: Average; www.linamar.com) makes a variety of automotive parts, including cylinder heads and cylinder blocks. It also makes self-propelled, scissor-type work platforms under the Skyjack brand, as well as agricultural harvesting equipment. Sales in the quarter ended March 31, 2021, rose 15.0%, to $1.78 billion from $1.55 billion a year earlier. Sales at the Mobility division (80% of the total) improved 14.6% as carmakers increased production following last year’s lockdowns. The Industrial division (20%) saw its sales gain…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.