Magna upgraded to Outperform from Market Perform at BMO Capital

BMO Capital analyst Peter Sklar upgraded Magna to Outperform from Market Perform with a price target of $74, up from $65. The analyst contends that the monetary tightening cycle is closer to the end than to the beginning, and discretionary stocks like auto parts will outperform as it becomes clearer that inflationary trends are abating. There is now sufficient evidence of a sustained deceleration of inflation as evidenced by the monthly U.S. CPI, and an eventual Fed easing will be incorporated into equity valuations over the coming quarters, the firm adds.