
BMO Stock Forecast & Price Target
BMO Analyst Ratings
Bulls say
Bank of Montreal (BMO) reported an increase in core lending net interest margin (NIM), with the all-bank NIM rising by 2 basis points quarter-over-quarter to 1.85%, and Canadian personal and commercial banking improving to 2.84%. The bank is also making strides in its capital optimization strategy, supported by a strong excess capital position, which may facilitate a potential share buyback of approximately 4%. Furthermore, BMO is expected to achieve robust earnings per share (EPS) growth of 14% in fiscal 2026 and 10% in fiscal 2027, driven by improvements in commercial lending and net originations.
Bears say
The Bank of Montreal's net interest margin (NIM) for personal and commercial banking remained unchanged at 3.90%, indicating potential stagnation in one of its key revenue drivers. Additionally, the total provision for credit losses (PCL) of $797 million fell below both internal estimates and market consensus, reflecting possible challenges in asset quality and risk management. Despite a strong performance in core cash earnings per share, the persistence of flat NIM and lower-than-expected PCLs could signal underlying vulnerabilities that may impact future financial stability.
This aggregate rating is based on analysts' research of Bank of Montreal and is not a guaranteed prediction by Public.com or investment advice.
BMO Analyst Forecast & Price Prediction
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