TSX:LNR - Post Discussion
Post by
Possibleidiot01 on Dec 11, 2023 2:01pm
Teal Linde - BNN - TOP PICK
LINAMAR (LNR TSX) Linamar, as a company, is doing alright overall, largely because its industrial segment, which includes its Skyjack aerial lift business, and its agriculture machinery business, is doing very well. The results of its industrial segment are actually masking its underperforming auto parts business. But here's the opportunity, its largest industrial business, Skyjack, is expected to continue to perform well next year because its entire industry is still enjoying high backlog levels. Furthermore, Skyjack's two main competitors, Oshkosh and Terex, have both said prices may rise next year due to rising costs. However, Linamar has stated it will not need to raise its prices and is optimistic about taking market share as a result, likely because its manufacturing is domiciled in Canada where it can take advantage of the weaker Canadian dollar. So, if the auto parts business, which is their largest business, can improve profitability from low levels to just average levels next year, a noticeable lift in earnings could occur to support a higher share price.
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