Linamar (TSE:LNR) Raised to "Strong-Buy" at Cibc World Mkts

Key Points

• Linamar has been upgraded by CIBC World Markets from a "hold" to a "strong-buy" rating, indicating a positive outlook for the company's stock.
• Analysts have significantly adjusted their price targets for Linamar, with the consensus now at C$82.40, after various firms raised their estimates, including Raymond James who set a target of C$80.00.
• Shares of Linamar are trading slightly down at C$74.09, and the company has shown strong market indicators with a P/E ratio of 7.73 and a market capitalization of C$4.53 billion.

Cibc World Mkts upgraded shares of Linamar (TSE:LNR - Free Report) from a hold rating to a strong-buy rating in a research report report published on Monday, August 25th,Zacks.com reports.

A number of other equities research analysts have also issued reports on LNR. Scotiabank increased their price target on Linamar from C$71.00 to C$80.00 and gave the stock a "sector perform" rating in a research note on Thursday, August 14th. Raymond James Financial increased their price target on Linamar from C$70.00 to C$80.00 and gave the stock a "market perform" rating in a research note on Thursday, August 14th. TD Securities increased their price target on Linamar from C$78.00 to C$85.00 and gave the stock a "buy" rating in a research note on Thursday, August 14th. BMO Capital Markets increased their price target on Linamar from C$75.00 to C$80.00 in a research note on Thursday, August 14th. Finally, CIBC upgraded Linamar from a "neutral" rating to an "outperform" rating and increased their price target for the stock from C$77.00 to C$87.00 in a research note on Tuesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, Linamar currently has an average rating of "Moderate Buy" and an average price target of C$82.40.

Linamar Stock Performance

Linamar stock traded down C$0.02 during trading on Monday, reaching C$74.98. The company had a trading volume of 73,554 shares, compared to its average volume of 135,601. Linamar has a 52 week low of C$43.84 and a 52 week high of C$75.85. The firm's 50-day simple moving average is C$68.52 and its 200 day simple moving average is C$59.47. The firm has a market capitalization of C$4.48 billion, a price-to-earnings ratio of 21.24, a price-to-earnings-growth ratio of 1.12 and a beta of 1.67. The company has a current ratio of 1.79, a quick ratio of 0.75 and a debt-to-equity ratio of 42.84.

Linamar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 9th. Stockholders of record on Friday, August 22nd will be given a dividend of $0.29 per share. This is a positive change from Linamar's previous quarterly dividend of $0.25. This represents a $1.16 dividend on an annualized basis and a dividend yield of 1.5%. Linamar's dividend payout ratio (DPR) is presently 29.46%.

About Linamar

Linamar Corporation, together with its subsidiaries, produces engineered products in Canada, Europe, the Asia Pacific, and rest of North America. It operates through two segments, Mobility and Industrial. The Mobility segment focuses on light metal casting, forging, machining, and assembly for electrified and powered vehicle markets.