The fundamentals are in good order and argue for an upward movement on the share.
The company is characterized by significant growth coupled with high profitability. Sales are expected to grow to CAD 5.1 billion, an expected increase of 20%. Net income per share is also up sharply from over 25% to CAD 4.91. The net margin of the company remains high at over 7.5% forecast in 2015 and 2016. Finally, analysts covering this stock remain confident on Linamar with an average target price of CAD 91.
From a technical point of view, the share of the company Linamar resumed an upward trend since late August. Moreover, prices have recently been closed to the CAD 67.3, suggesting an upward potential.
In view of the fundamental and technical elements, the decline in recent sessions offers an attractive entry point on the current level. The main target price will be the daily resistance at CAD 77.8 and by extension CAD 88.75 (17% potential). However, a stop loss will be placed below CAD 70.
Linamar Corporation is a Canada-based advanced manufacturing company. The Company is engaged in providing manufacturing solutions and developing engineered products. Its segments include Industrial and Mobility. The Industrial segment consists of MacDon, Salford, Bourgault, and Skyjack. MacDon manufactures combined draper headers and self-propelled windrowers for the agricultural harvesting industry. Skyjack manufactures scissor, boom, and telehandler lifts for the aerial work platform industry. The Mobility segment is focused on propulsion systems, structural and chassis systems, energy storage and power generation for both the global electrified and traditionally powered vehicle markets and is subdivided into three regional groups and one global product group: North America, Europe, Asia Pacific, and the newly formed Structures Group. The regional mobility groups are vertically integrated operations combining expertise in light metal casting, forging, machining, and assembly.