Bank of Montreal (BMO:CA) (BMO) Analysts Update Coverage

Bank of Montreal (BMO:CA) (BMO) Analysts Update Coverage

Bank of Montreal (BMO:CA) (BMO)

Analyst Updates

National Bank recently raised its 12 month target price to C$186 from C$181 while maintaining a Sector Perform rating. The modest increase reflects incremental improvements in earnings visibility, supported by stable net interest margins and resilient credit quality across BMO’s diversified lending portfolio. Analysts acknowledge steady execution and balance sheet strength but the Sector Perform stance suggests the firm views valuation as largely balanced relative to Canadian banking peers. In other words, while fundamentals remain solid, upside potential is seen as more measured without a clear catalyst for accelerated earnings growth or multiple expansion.

Raymond James raised its target price more aggressively to C$214 from C$183 and reiterated its Outperform rating. The upward revision signals greater confidence in BMO’s earnings trajectory and capital deployment strategy. Raymond James likely sees operating leverage improving as cost synergies from prior acquisitions are realized and loan growth stabilizes. The Outperform rating implies expectations of above-peer total return potential, supported by improving profitability metrics, strong capital ratios, and continued dividend stability. The higher target indicates Raymond James sees significant upside from current levels, potentially driven by improving macro conditions and better-than-expected credit performance.

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