MTUAF - Lisi: 2 Rising Stars And 1 Laggard

2025-05-11 10:16:05 ET

Summary

• Lisi remains a buy due to strong growth prospects in the aerospace and medical segments, despite near-term automotive market weakness.
• Aerospace sales grew 16.6% in Q1, driven by higher production rates, notably from Airbus, while medical sales rose 12.6% due to improved raw material availability.
• Automotive sales declined 5.7%, but Lisi is divesting less profitable businesses and exploring acquisitions to bolster its Clipped Solutions business.
• Despite risks in the automotive segment, Lisi offers 17% upside potential, with long-term growth fundamentals intact, making it undervalued against peers.

Lisi ( OTCPK:LSIIF ) is one of the companies that I added to my expanding aerospace coverage in September 2024. In that report , I marked the stock a buy, and the stock price has increased nearly 18% since. In January, I revisited LISI and remained bullish but did note the negative impact from the weakness in the automotive business....

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