TSE:BMO

Bank of Montreal (BMO.TO)

242.76
-0.80 (0.33%)
as of Sep 4, 2026, 8:00:00 pm Market Open.
1164 watching
0
Investor Insights
star iconSep 7, 2026, 12:00 am

This summary was created by AI, based on 13 opinions in the last 12 months.

The Bank of Montreal (BMO) has garnered a mixed but generally positive outlook from various experts in the financial sector. Most reviewers emphasize its stable dividend and strong fundamentals, particularly in a well-regulated Canadian banking environment. While some analysts express concerns regarding loan loss provisions and inflationary pressures, they acknowledge BMO's robust operations in both Canadian and U.S. markets, predicting growth and profitability in the long run. Investors are advised to hold onto their shares, with some suggesting it could be a good time to buy if they have a long-term perspective. However, others caution that the entire Canadian banking sector is fully valued, recommending a diversified approach in investments.

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Consensus
Hold
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Valuation
Fair Value
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Similar
RY
BUY
Favorable toward all Canadian banks. Solid dividend, low PE multiple. Not his favorite/ TD and RY are his favorite.
DON'T BUY
This would not be his preferred choice in the banks. He would look at Royal (RY-T) or Scotia (BNS-T).
HOLD
Expanding into China and he thinks it will be hard work for them. Chinese like banking with the Chinese. The Harris Bank in Chicago is a bit of a millstone around their neck. Pretty good dividend.
COMMENT
Had a major rise from March because it had been so oversold. 200-day moving average is at $40 so there is a huge gap between this and the stock price. Therefore anything can happen including a correction. If you are worried about losing some profits, your stoploss should be below $47-$48.
SELL
Take money out of it. It was the most under valued bank in the past and it has more than doubled this year. Move money into lifecos and technology, out of financials.
COMMENT
Caller sold a Put for $3 and could now buy the Option back at $1.50. He is very bullish on Canadian banks. He would hold on to the Puts, ride out the premium, take the full $3. Worst-case scenario you be given the stock at a much lower price than what it is.
BUY
Financials have been pulling back the last few days. Pays a fairly generous dividend of over 5.5% and recent results show that it is sustainable. Came out ahead of expectations. Not a lot of capital charges. Still have some problems in the US but overall it's a good place to have some money.
PAST TOP PICK
(A Top Pick Aug 20/08. Up 28.7%.)
COMMENT
Potentially bank stocks look like they want to work a bit higher, maybe 15%-18%. This one might carry as high as $60. Have to be careful because over the past 30 years of trading in bank stocks this has been the biggest, fastest recovery of them and when they start to fall they can have nasty corrections.
BUY
Bonds. Views on this bank are increasingly positive as time goes on. A good one would be 5.2% due 2012. Subordinated debt.
COMMENT
Longer-term view is that banks do not have anywhere near the tail wind that they have had over the last 15 years. Thinks they will have an earnings multiple contraction over time. Currently they trade at a premium multiple to global banks, especially the US. Thinks valuations look pretty stretched.
BUY ON WEAKNESS
Banks had a huge run and he is expecting a slight pullback. About $47 would be a level of support that could be a pretty safe entry point and 5%-10% would be a good stoploss from that level. Institutional players are rotating out of the banks and into insurance and fund companies, which would be an alternative place to look at this time.
COMMENT
Capital Trust II 10% bonds. The legal maturity is almost a century from now but is structured to be redeemed in 10 years. If the bank lets the bond remain outstanding they will have to pay a government bond yield +10%.
PAST TOP PICK
(A Top Pick April 13/09. Up 18.7%.) Still attractive but estimated return is in the high single digits rather than double digits.
COMMENT
Could see the price of this going beyond $55.
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