Scotiabank Issues Pessimistic Forecast for Linamar Earnings

Key Points

• Scotiabank lowered its FY2027 EPS forecast for Linamar to C$13.57 from C$14.01, while maintaining a “Sector Perform” rating and a C$102 price target.
• Linamar reported quarterly EPS of C$3.28 on revenue of C$2.94 billion, with a 10.37% return on equity and a 5.90% net margin.
• Analyst sentiment remains moderately positive, with a consensus rating of “Moderate Buy” and an average target price of C$104.14; shares recently traded at C$101.59.

Linamar Co. (TSE:LNR - Free Report) - Scotiabank decreased their FY2027 earnings per share estimates for Linamar in a report released on Thursday, July 23rd. Scotiabank analyst J. Goldman now expects that the company will post earnings of $13.57 per share for the year, down from their prior estimate of $14.01. Scotiabank has a "Sector Perform" rating and a $102.00 price objective on the stock. The consensus estimate for Linamar's current full-year earnings is $11.43 per share.

Linamar (TSE:LNR - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported C$3.28 EPS for the quarter. The firm had revenue of C$2.94 billion for the quarter. Linamar had a return on equity of 10.37% and a net margin of 5.90%.

Other analysts have also issued reports about the stock. Canadian Imperial Bank of Commerce raised their price objective on shares of Linamar from C$110.00 to C$115.00 in a research note on Tuesday, July 14th. Scotia upped their target price on shares of Linamar from C$96.00 to C$99.00 and gave the stock a "sector perform" rating in a research note on Thursday, May 7th. TD increased their price target on shares of Linamar from C$116.00 to C$119.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, Raymond James Financial raised their price target on shares of Linamar from C$90.00 to C$100.00 and gave the company a "market perform" rating in a research report on Thursday, May 7th. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of C$104.14.

Linamar Stock Performance

Shares of Linamar stock opened at C$101.59 on Monday. The stock has a market cap of C$6.02 billion, a price-to-earnings ratio of 9.68, a PEG ratio of 1.12 and a beta of 1.72. The firm's 50-day moving average is C$101.16 and its 200 day moving average is C$93.02. Linamar has a 1 year low of C$65.60 and a 1 year high of C$107.12. The company has a debt-to-equity ratio of 35.07, a current ratio of 1.50 and a quick ratio of 0.75.

Insiders Place Their Bets

In other Linamar news, insider Csaba Havasi sold 3,000 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of C$97.47, for a total transaction of C$292,410.00. Following the transaction, the insider owned 71,543 shares in the company, valued at approximately C$6,973,296.21. This represents a 4.02% decrease in their position. Company insiders own 33.49% of the company's stock.

Linamar Company Profile

Linamar Corp is a diversified global manufacturing company of highly engineered products. The Company's Industrial segment operates the Skyjack and MacDon brands, It manufactures products for the Aerial Work Platform and Agricultural industries, respectively. The Mobility segment features vertically integrated operations to combine expertise in light metal casting, forging, machining and assembly of components and systems for electric and traditional vehicle applications. In addition, McLaren Engineering and eLIN Product Solutions Group provide design, development, and testing services for the Mobility segment.

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