BMO Capital analyst Tamy Chen maintained a Buy rating on Linamar (LIMAF – Research Report) yesterday and set a price target of C$65.00.
Tamy Chen has given his Buy rating due to a combination of factors that indicate a positive outlook for Linamar. The company’s Mobility segment has shown better-than-expected performance, with a 2025 outlook that suggests margin expansion within a normal range, driven by recent launches and cost-saving measures. This is despite a flat sales guidance, which aligns with industry forecasts.
Additionally, Linamar’s stock is currently undervalued, trading at a lower multiple compared to historical averages. While there are concerns about tariff uncertainties, the company has a strategic buffer in place with its accumulated inventory. Moreover, the potential for increased takeover opportunities from distressed suppliers in Europe adds to the positive sentiment. These elements collectively support the Buy rating, even as the Industrial segment’s outlook has been adjusted downward, consistent with broader industry trends.
Based on the recent corporate insider activity of 30 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LIMAF in relation to earlier this year.