Canaccord Genuity analyst Matthew Lee has maintained their bullish stance on BMO stock, giving a Buy rating on February 20.
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 positioning. The bank reported an adjusted cash EPS that significantly exceeded expectations, driven by robust revenue growth across all business segments and effective credit management. The impressive increase in total revenues, coupled with a controlled rise in expenses, resulted in substantial pre-tax pre-provision profit growth.
Additionally, the bank’s performance in key areas such as Canadian and US personal and commercial banking, capital markets, and wealth management and insurance, all surpassed estimates. Notably, the capital markets segment showed a remarkable increase in pre-tax pre-provision profit, supported by higher trading revenues and strong client flows. Furthermore, the bank’s capital strength, as evidenced by its CET1 ratio, was above expectations, underscoring its solid financial foundation. These factors collectively contribute to Matthew Lee’s positive outlook on the bank’s stock.
In another report released on February 20, Scotiabank also maintained a Buy rating on the stock with a C$159.00 price target.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BMO in relation to earlier this year.