
BMO Stock Forecast & Price Target
BMO Analyst Ratings
Bulls say
Bank of Montreal (BMO) has demonstrated improvement in its core net interest margin (NIM), with the all-bank NIM rising 9 basis points quarter-over-quarter to 1.69%, and Canadian personal and commercial banking NIM increasing to 2.84%. The bank's capital optimization strategy is progressing effectively, supported by a robust excess capital position that could facilitate a share buyback of approximately 4%. Forecasts project that BMO will achieve solid earnings per share (EPS) growth of 14% in fiscal 2026 and 10% in fiscal 2027, indicating a positive financial outlook.
Bears say
The Bank of Montreal's net interest margin (NIM) for personal and commercial banking remained stagnant at 3.90% quarter-over-quarter, indicating a lack of growth potential in this key area. Additionally, the total provisions for credit losses (PCLs) were reported at $797 million, falling short of both internal estimates and market consensus, suggesting potential concerns around asset quality and loan performance. Despite a significant year-over-year and quarter-over-quarter increase in core cash EPS to $3.23, the stagnation in NIM and underperformance in PCLs raises questions about the sustainability of these earnings amid a challenging financial landscape.
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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