
TSE:BMO
This summary was created by AI, based on 15 opinions in the last 12 months.
The Bank of Montreal (BMO) has garnered a mixed yet generally positive outlook from various experts. Many emphasize its strong performance across business lines, noting its consistent dividend and stable financials. The Canadian banking sector is viewed favorably, with BMO being considered a solid choice within a tightly regulated oligopoly. However, some analysts express caution, citing concerns over credit quality and inflation, which may pressure banks. Valuation is a topic of discussion, with suggestions that while BMO is technically sound, the overall sector appears fully valued, leading to recommendations to take profits or diversify into other sectors.
Rotation from small-cap banks into large ones? He doesn't see a correlation. BMO itself was the highest flyer in 2018 until it got hit hard in Q4, and now it's back in the middle of the big 5 Canadian banks. He's been gradually selling off BMO (he owns 4 of the 5 banks). BMO is executing well in capital markets and the U.S., but its valuation in neutral.
His favorite Canadian bank is RY. However both RY and BMO are investing in technology, which should allow them to continue growing dividends. No problem buying BMO or RY here.