CIBC Capital Markets adjusted its outlook on five Canadian auto-related stocks, raising its price target on four and lowering its target on one, ahead of earnings for the group that begin on August 1.

Analyst Krista Friesen increased her target on AutoCanada Inc. (ACQ.TO) to $27.50 from $23 (Neutral), Linamar Corp. (LNR.TO) to $68 from $57 (Neutral), Magna International Inc. (MG.TO, MGA) to US$44 from US$38 (Neutral), and Martinrea International Inc. (MRE.TO) to $10 from $8.75 (Neutral).

Friesen lowered her price target on Boyd Group Services Inc. (BYD.TO) to US$244 from US$249 (Outperform).

"While we do not expect tariffs to be nearly as topical as they were during Q1 earnings, we do still expect them to be a focus as we are seeing the impacts of them play out in real time," the analyst said in a note to clients.

"As the chatter around tariffs as they relate specifically to the auto industry has subsided, we have seen an improvement in the auto supplier valuations, which at one point this year were trading near pandemic lows," Friesen said.

"We maintain our Neutral rating on the auto suppliers and ACQ as the economic backdrop for the remainder of the year remains uncertain. BYD remains our top pick amongst the auto-related names."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)