TSE:BMO

Bank of Montreal (BMO.TO)

252.12
+1.35 (0.54%)
as of Jul 27, 2026, 8:00:00 pm Market Open.
1162 watching
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Investor Insights
star iconJul 27, 2026, 12:00 am

This summary was created by AI, based on 15 opinions in the last 12 months.

The Bank of Montreal (BMO) has garnered mixed feedback from financial experts, reflecting a complex picture of its current performance and future outlook. Reviews praise its strong dividend history, diversified geographical presence, and stable asset growth, particularly in wealth management. Despite a favorable outlook for the Canadian banking sector characterized by a tightly regulated oligopoly, concerns about loan losses, especially in the U.S. market, linger. Some analysts are cautious, suggesting that while BMO may be a solid long-term hold, current market conditions warrant a more defensive investment strategy. Additionally, there's a sentiment of cautious optimism towards the potential for growth, but also a call for diversification amid current valuations deemed as premium rather than undervalued or a bargain.

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Consensus
Cautious
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Valuation
Overvalued
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Similar
RY
TRADE
Top 3 choices in banks for the long term would be Toronto Dominion (TD-T), Bank of Nova Scotia (BNS-T) and Royal Bank (RY-T). Where this could be wrong is if the Bank of Montreal (BMO-T) gets taken over at some point and it would be thw big winner. Canadian Imperial Bank of Commerce (CM-T) is not particularily cheap right now.
BUY
Canadian banks continue to offer good value on a medium time frame. If we were to see a rapid ratcheting up of interest rates, they would be vulnerable, but this is not expected. The banks offer reasonable value here.
BUY
Banks are the cheapest in the financial area based on 12.2 to 12.8 X price earnings.
TOP PICK
(A Top Pick Nov 30/04. Up 1.5%.) There now seems to be a thought process that bank mergers will happen and this is the most likely candidate. Extremely well run. Refocusing on the retail end in Canada as well as their good holding of Harris Bank in the US.
HOLD
A great bank. Good asset base in both Canada and the US (through their Harris Bank holdings). Very interesting attractive structure. Expects a 5/7% return, like the other banks.
DON'T BUY
What happens in the US ultimately works its way into the Canadian market. US banks are having a very difficult time and are down about 7% year to date. Canadian banks have had good yield support, but they really are not making a lot of headway. They are basically trading sideways.
DON'T BUY
Bank stocks are starting to top which is not surprising. The bull market started in 2002 and we are 2 1/2 years into the bull market. That's usually the time bank stocks start to move down.
BUY
Using P/E ratios, banks are among the cheapest in the financials. Bank of Montreal (BMO-T) and Bank of Nova Scotia (BNS-T) are the cheapest followed by Toronto Dominion (TD-T) then by Royal (RY-T) and CIBC (CM-T). His favourite is Toronto Dominion. Michael Sprung, of his firm, likes Bank of Nova Scotia and CIBC.
BUY
The cheapest bank with the exception of the National Bank (NA-T). The Harris acquisition was a great one, but they have never been able to capitaize on it. Have a great loan book and they should continue to do well.
WEAK BUY
Probably an entry point for a long term position. The least favourites of his banks. The takeover premium has been coming out of it. An average valuation. Their US Harris bank is a nice jewel.
BUY
Has been a sell-off. When you get sell-offs in major financial institutions, it's a pretty good time to be buying it.
WEAK BUY
Likes their Harris Bank asset. If and when there is some consolidation, it will be advantageous to have that asset. A good solid holding to have, but you have to realize that a lot of the better returns have been had on the cycle and loan loss provisions are a little on the light side for where we are in the course of the cycle.
BUY
Toronto Dominion, Bank of Montreal and Bank of Nova Scotia are his 3 top favourite banks.
BUY
Likes the banks in general. Favourites are this and Toronto Dominion (TD-T) as they are the cheapest.
BUY
Numbers were just released and this is now their #1 bank stock.
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