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Linamar Corporation (LNR)
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BRP Inc. Subordinate Voting Shares (DOO)
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Ag Growth International Inc. (AFN)
Q: Hi guys
Looking at three companies in the Industrial/Consumer areas. Looking out a year to 3 years what would be your favorite(s) in regards to total return. Can you also give the forward P/E for the 3 stocks?
Much thanks
Stuart
Looking at three companies in the Industrial/Consumer areas. Looking out a year to 3 years what would be your favorite(s) in regards to total return. Can you also give the forward P/E for the 3 stocks?
Much thanks
Stuart
5i Research Answer:
In terms of forward P/E, here is the multiple these companies are trading at:
DOO is trading at 9.3x
LNR is trading at 7.4x
AFN is trading at 10.6x
We think these are good businesses, trading at cheap valuations. In terms of total return, we think DOO has the most attractive upside potential if consumer spending starts recovering over the next few years. We think DOO is a very well-managed company with a decent growth rate and strong buyback over the years, trading at a cheap valuation, a lot of good things could happen as growth resumes here.