Bank of Montreal’s updated narrative has driven a modest lift in its fair value estimate from C$175.93 to C$181.27, even as its discount rate has moved higher from 7.71% to 8.46% in recognition of lingering risk around U.S. operations. The Street’s mixed but generally constructive stance, balancing confidence in recovering U.S. credit trends and revenue growth of 6.85% edging up to 7.19% against macro and execution risks, underpins this recalibrated price view. Read on to see how these shifting assumptions could influence future price targets and how you can stay on top of the evolving story around BMO’s stock.
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🐂 Bullish Takeaways
Canaccord analyst Matthew Lee remains constructive with a Buy rating and lifted his target to C$192 from C$185, signaling confidence that BMO can still compound value from here despite recent gains.
Scotiabank raised its target to C$179 from C$169 while maintaining a Sector Perform stance, reflecting recognition of improving fundamentals and execution, even if upside is viewed as more measured.
Across the more positive and neutral views, analysts generally reward BMO for progress on U.S. credit normalization and underlying revenue growth, but caution that some of the recovery and cost discipline may already be reflected in the current valuation.
🐻 Bearish Takeaways
National Bank downgraded BMO to Sector Perform from Outperform with a C$181 target, underscoring a more cautious stance that the risk or reward balance has evened out as the stock has repriced.
Raymond James initiated at Market Perform with a C$182 target, arguing that the recent improvement in U.S. provisions for credit losses is largely priced in and leaving less room for upside if execution or macro conditions disappoint.
Together, these more reserved views highlight concerns that valuation now embeds much of the expected improvement in U.S. operations and growth, raising the bar for further re rating absent clearer evidence of sustained earnings momentum.
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TSX:BMO 1-Year Stock Price Chart
Bank of Montreal has begun a sale process for selected U.S. branches holding about $6 billion in deposits and is weighing exits from smaller markets such as Wyoming and the Dakotas as part of a broader review of its American footprint.
The bank is exploring the sale of U.S. branches in regional clusters as it reassesses which U.S. retail markets it wants to remain in. This signals a strategic reshaping of its U.S. branch network to sharpen focus on priority regions.
BMO increased its quarterly common share dividend by $0.04, or 2%, to $1.67 per share for the first quarter of fiscal 2026, payable February 26, 2026. The move highlights management’s stated confidence in capital strength and earnings durability.
The bank announced the planned retirement of CFO Tayfun Tuzun in early 2026 and the appointment of Rahul Nalgirkar as Deputy CFO and then CFO effective January 1, 2026, outlining a clear succession plan intended to support stable financial leadership.
Story Continues