Mining & Metals
CIBC Provides its Q1/26 Auto Preview
CIBC Capital Markets released its "Q1/26 Auto Preview".Auto names have been volatile since the start of the Iran War, which has understandably turned the market's focus back to macro risks," noted CIBC."Shares have begun to price in more optimistic outcomes for the conflict, though we worry this could prove premature," said CIBC.CIBC does not believe the risk lies with Q1 results, which it said, do not appear to have been impacted by the war, and which should reflect industry sales and production that fell largely in line with expectations, it noted.CIBC does not expect the suppliers to change guidance with Q1 reporting, but noted "the longer the war endures, the greater the risks become"."We continue to view valuations as undemanding, but macro events will likely continue to create near-term volatility, and we acknowledge elevated risks that lower visibility," said CIBC.Resolutions to the Iran War and USMCA negotiations are "key catalysts for the sector", and would help return attention to positive fundamental developments, added CIBC.CIBC's estimates, ratings and price targets are unchanged, and it said that Linamar (LNR.TO) remains its "top autos pick".Price: $23.28, Change: $+0.25, Percent Change: +1.09%
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