Linamar updated October 7, 2017

Linamar is updated and rated (higher) Buy at $77.93.

Linamar was added to the site on November 27 last year rated Strong Buy at $51.09. At that time it looked very cheap. It’s up about 53% since then. But it still looks quite cheap with a P/E of 9.4. It could be rated (lower) Strong Buy based on its numbers. However  earnings growth has slowed somewhat in 2017. Also the recently higher Canadian dollar will likely be a headwind in the near term. And there are risks regarding NAFTA and protectionism in the U.S. In my own trading, I may add modestly to my position and will be prepared to buy more if the stock dips into the $60’s. It is a very well managed company and should do well over the long term but its price can be volatile when investors turn pessimistic about the outlook for auto parts companies.