CA - Linamar rallies after BMO Capital turns bullish on 2023 setup

Linamar Corporation ( TSX: LNR:CA ) broker higher in morning trading on Wednesday after BMO Capital upgraded the auto industry supplier to an Outperform rating from Market Perform.

Analyst Peter Sklar and team made the argument that consumer discretionary stocks could outperform with the monetary tightening cycle closer to the end than to the beginning.

"We now believe there is sufficient evidence of a sustained deceleration of inflation as evidenced by the monthly U.S. CPI and that an eventual Fed easing will be incorporated into equity valuations over the coming quarters."

Adding it all up, BMO sees Linamar as a beneficiary of decelerating inflation trends this year.

Shares of Linamar were up 3.89% in Toronto trading at 10:40 a.m.

Linamar is not due to report earnings until March 8.

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