Matthew Lee, an analyst from Canaccord Genuity, maintained the Buy rating on Bank Of Montreal. The associated price target remains the same with C$170.00.
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Matthew Lee has given his Buy rating due to a combination of factors that highlight the Bank of Montreal’s strong financial performance and strategic initiatives. The bank’s adjusted cash earnings per share exceeded expectations, showcasing a robust 22% year-over-year growth. This was largely driven by impressive results in the U.S. operations, where a reversal in performing provisions for credit losses contributed positively. Additionally, the bank’s total revenue increased by 9.5% year-over-year, outpacing the rise in expenses, which led to significant pre-tax pre-provision profit growth.
Furthermore, BMO’s capital position remains solid with a CET1 ratio of 13.5%, slightly above market expectations. The bank’s strategic share repurchase program, including a new Normal Course Issuer Bid, indicates a proactive approach to capital management. The performance in Wealth Management and Insurance was notably strong, with a 24.5% increase in adjusted pre-tax pre-provision profit, driven by higher revenues and gains on the sale of non-strategic insurance contracts. These factors collectively support Matthew Lee’s positive outlook on BMO, justifying the Buy rating.
Lee covers the Financial sector, focusing on stocks such as Bank Of Montreal, Bank Of Nova Scotia, and Canadian Bank of Commerce. According to TipRanks, Lee has an average return of 14.7% and a 67.57% success rate on recommended stocks.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$178.00 price target.