Ccord bumper to bumper
BUY rated for results improvement We think Martinrea (MRE) has good share price appreciation potential from returning margins to more normal levels. We expect the two current margin issues, underperforming assets and unusually high launch costs to dissipate over the next 1-2 years. This should generate very strong EBITDA growth per our forecast. We believe Q2/14 performance was consistent with our thesis, as the company produced sequentially improved results, at least in part from improving underperforming operations.