Linamar (LNR) Gets a Buy Rating from CIBC

By Jason Carr

Linamar (LNRResearch Report), the Conglomerates sector company was revisited today, and remains undervalued for at least one analyst on the street. CIBC’s analyst Kevin Chiang reiterates their Buy rating on the shares, with a C$61 price target.

According to TipRanks.com, Chiang is a 5-star analyst with an average return of 13.0% and a 68.5% success rate. Chiang covers the Services sector, focusing on stocks such as Canadian Railway, Canadian Pacific, and Air Canada.

Currently, the analyst consensus on Linamar is a Moderate Buy with an average price target of C$70.50, a 50.6% upside from current levels. In a report released yesterday, Scotiabank also reiterated a Buy rating on the stock with a C$80 price target.

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Based on Linamar’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of C$132 million. In comparison, last year the company had a net profit of C$197 million.

Linamar Corp. is a diversified manufacturing company, which engages in engineered products powering vehicles, motion, work and lives. It operates through the following segments: Transportation and Industrial.

The company’s shares closed on Thursday at C$46.80.