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
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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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COMMENT
Selling at just over 2X book that looks like a relatively good Buy, but they have had problems with a few write-offs. The real problem has always been where is the growth in their business model going to come from. ROE of 16% is low compared to other banks.
DON'T BUY
This is his least favourite bank. The growth outlook is worse than the others. Their strategy is a bit muddled and seems unclear. They have large US retail exposure. He is very cautious about this bank.
TOP PICK
(Long Term Covered Call) For someone seeking income. Get 5 dividend payments between now and 2009. Overall return is better than 16% (assuming BMO doesn’t move). You could go down by $5 per share and still break even, while getting a 7% payout.
TOP PICK
The lowest price to book. Big yield. They have a lot of initiatives, which if they work out, will be very good. Even if they don't it will be fine.
BUY
Made an acquisition of the Harris bank in the Chicago area and the feeling is they will be making an additional acquisition. Valuation is probably reasonable right now. In the past, they have had a few issues.
BUY
Generally speaking, Canadian banks are pretty well run. They struggled a lot recently but they'll get their act together. Has a decent yield. Decent value at this price.
BUY
Longer term, the Canadian banks will be a good place to be.
DON'T BUY
Feels it has the least growth profile of the big 5. Has the worst exposure by a long shot to the commercial paper side. Highest dividend yield.
DON'T BUY
Banks have big corrections 22% upside. Prefers to trade them, then buy/hold them. Main trend will be down for banks, maybe for years. There will come a time again for banks.
TOP PICK
Bank of Montreal Bond. 7.00% (Matures Jan 28th, 2010) Has real value, 80 basis points.
DON'T BUY
Got into terrible gas trading deals with the hedge fund Amaranth and is still unwinding from this. Last quarter cost them $.19. Management increased dividend to indicate they have the cash flow. He feels it will take a little while to work out. Feels the
DON'T BUY
Harris Bank in Chicago continues to largely under perform. A lot of Bank of Montreal earnings have been heavily driven by trading in capital markets related revenue and are not creating growth in other parts of the banking business.
COMMENT
Just disclosed they are having continual difficulties getting their natural gas commodities trade book down to comfortable levels and are absorbing further losses.
TOP PICK
This could apply to any of the Canadian banks, but this one came off the most and has the highest yield at 4.4%. Sub prime exposure is minimal. Financials led the market down, but will lead the market up. Quality names will do very, very well.
BUY
Haven't heard too much about how the subprime loans are going to affect them. It has the highest yield (over 4%) of any of the 5 major Canadian banks.
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