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.