TD Securities Remains a Hold on Bank of Montreal

By Carrie Williams

In a latest note to investors, a research analyst has provided a rating update for the Financial sector company, Bank of Montreal (TSX: BMO). Analyst Mario Mendonca from TD Securities remains neutral on the stock and has a C$105 price target.

Mendonca noted:

“We raised our PCLs forecast to account for a prolonged period of weak fundamentals (primarily low utilization) in U.S.”

According to TipRanks.com, Mendonca is a 3-star analyst with an average return of 4.4% and a 75.0% success rate. Mendonca covers the Financial sector, focusing on stocks such as Canadian Bank of Commerce, Manulife Financial Corp, and Royal Bank Of Canada.

Currently, the analyst consensus on Bank of Montreal is Hold and the average price target is C$102.57, representing a 12.7% upside.

In a report issued on May 23, Barclays also upgraded the stock to Hold with a C$98 price target.

Bank of Montreal’s market cap is currently C$59.05B and has a P/E ratio of 12.5.

Bank of Montreal engages in providing banking and financial services to individuals and institutions. It operates through three groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets. The Personal and Commercial Banking is comprised of Personal and Commercial Banking Canada and Personal and Commercial Banking U.S., which provides financial solutions for everyday banking, financing, investing, credit cards and creditor insurance, as well as a variety of commercial products and financial advisory services to individuals, small and mid-sized business customers. The Wealth Management offers wealth management products and solutions including insurance products. The BMO Capital Markets group provides equity and debt underwriting, corporate lending and project financing, mergers and acquisitions advisory services, merchant banking, securitization, treasury and market risk management, foreign exchange, derivatives, debt and equity research and institutional sales and trading. Bank of Montreal was founded by Robert Armour, John C. Bush, Austin Cuvillier, George Garden, Horatio Gates, James Leslie, George Moffatt, John Richardson and Thomas A. Turner on June 23, 1817 and is headquartered in Montreal, Canada.

The company’s shares closed last Thursday at $90.99.