Canada's auto parts makers should have a good showing during 2Q earnings season, according to TD Cowen in a report. Analyst Brian Morrison says Linamar, Magna International and Martinrea are well-placed in the current environment, despite some trade uncertainty. He points to better-than-expected May/June U.S light vehicle demand. He also says North American inventories remain lean, a favorable setup for meeting production targets/incremental upside in H2/26. "We view this backdrop as supportive for suppliers, though USMCA developments remain a cautionary headline headwind," Morrison says. Meanwhile, he expects margins to benefit from recent operating efficiency initiatives, adding to the overall positive picture for the sector. (adriano.marchese@wsj.com)
Dow Jones Newswires
Canadian Auto Parts Makers in Good Shape Heading Into 2Q Earnings — Market Talk
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Canada's auto parts makers should have a good showing during 2Q earnings season, according to TD Cowen in a report. Analyst Brian Morrison says Linamar, Magna International and Martinrea are well-placed in the current environment, despite some trade uncertainty. He points to better-than-expected Ma…