Canadian Tire upgraded to Outperform from Market Perform at BMO Capital

BMO Capital analyst Peter Sklar upgraded Canadian Tire to Outperform from Market Perform with a price target of C$181, up from C$160. The company is an "out-of-favor" COVID darling, having tumbled from over C$200 in mid-2021 to as low as C$140 before the recent rally, but the cost-of-living inflation and rising interest rates are already well-priced into the stock, the analyst tells investors in a research note. The current level provides an attractive entry point for this "well-managed" discretionary retailer, the firm adds.