TSE:BMO

Bank of Montreal (BMO.TO)

243.97
+1.90 (0.78%)
as of Sep 25, 2026, 8:00:00 pm Market Open.
1164 watching
0
HOLD
Likes story longer term. US acquisition they made late last year will be a little bit of an overhang for the stock because 1) have to raise some equity to pay for it and 2) how well they can integrate it into their US business model.
HOLD
Canadian banks will usually run as a pack but this one is usually in the back space. It has a very safe dividend. This one has some work to do before it looks ready to move up.
DON'T BUY
On a technical call, he is wary of both Bank of Montreal (BMO-T) and Royal (RY-T), the Royal in particular.
BUY
One of his favourite bank stocks. Cheaper than Toronto Dominion (TD-T) and Royal (RY-T), which he also owns. Recent US acquisition was well timed but their will be a few operating difficulties in the future such as will they keep some of the more regional; branches.
BUY
Fell off more than 8% on the announcement of their US acquisition. Has been a bit of a laggard versus its peers. Offers reasonable value here.
BUY
They have been in the US since 1984 so they should know what to do with their recent US acquisition. No point raising the dividend since it is the highest one on the street.
DON'T BUY
His fifth favourite of the big ones. They made an interesting purchase in December. A good geographical fit but there is not material upside for the first 3 years because of the price they paid.
HOLD
Reacted negatively to the acquisition of Marshall & Ilsley in the US. Acquisition will double their exposure in terms of lending and deposit. Paid a reasonable price of 1X of tangible Book but if you factor in the loan payback to the US government and writing down loan books, it becomes about 1.7X tangible Book.
WATCH
Bought a regional US bank that the market didn’t like so you have a torpedo. Bad thing about torpedoes is that they catch you by surprise and you have no defense. The good thing is that usually the market punishes the stock only once.
BUY
This bank tends to have the highest yield. Have gone a long way to straightening out some of the problems they were having in the last 1.5 years.
COMMENT
Canadian banks are fairly valued at these levels. Management has done a very good job of turning the bank around. If you want more upside, he would suggest a US bank. His preference in Cdn banks would be TD (TD-T) or Royal (RY-T).
HOLD
Canadian banks made it through the financial crisis in much better shape than the rest of the world. Has 1.7% (half) holding. Has been sitting on the sidelines. It is still a period of uncertainty. If there is a problem it will be in credit quality of assets.
BUY
Likes longer-term outlook very much. Target of 10% earnings annually is achievable. With 4.6% dividend yield, you're looking at handsome double-digit returns.
COMMENT
Expect all banks will grow dividends. Because of current payouts, this one will probably be slower than Toronto Dominion (TD-T), National (NA-T) or Royal (RY-T). Haven't increased dividends in the last few years so will probably play catch-up now.
TOP PICK
For income oriented accounts and being defensive, this is a pretty good total rate of return. Is impressed with decline in loan loss provisions, tightening up of cost structure and capital market activities.
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