Bank of Montreal (BMO:TSX) Analysts rate with a Buy, $153 target

STA Research
by: STA Research
bank of montreal dividend

Based on the Bank of Montreal stock forecasts from 12 analysts, the average analyst target price for Bank of Montreal is CAD 152.97 over the next 12 months. Bank of Montreal’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Bank of Montreal is Slightly Bearish, which is based on 4 positive signals and 7 negative signals. At the last closing, the Bank of Montreal’s stock price was CAD 135.12. Bank of Montreal’s stock price has changed by +3.42% over the past week, -8.12% over the past month and +10.43% over the last year.

Recently, CIBC lowered the target on the bank stock to $142 from $150, and kept the Hold rating steady.

Bank of Montreal is a financial services company that primarily operates in North America. In Canada and the United States, it has around 900 bank locations and 3,300 automated banking machines. The Bank of Montreal was established in 1817 and is based in Montreal, Quebec, Canada. 129 rue Saint Jacques, H2Y 1L6 Montreal, QC, Canada

 

What we like:

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on a total return basis, for investors seeking high-income yields.

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Negative cash flow

The company had negative total cash flow in the most recent four quarters.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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