The price target for Bank of Montreal (TSE:BMO, NYSE:BMO) has been raised to C$189.00 by Desjardins in a report released on December 4, 2023. This marks an increase from the previous target of C$180.00. Desjardins maintains a hold rating on the bank’s stock, reflecting a cautious optimism in the current market conditions.
Several other financial analysts have also adjusted their ratings and targets for Bank of Montreal. For example, CIBC raised its target price from C$192.00 to C$199.00 while assigning an “outperform” rating. This adjustment was part of a broader trend observed in recent reports, with TD Securities increasing its price objective from C$182.00 to C$184.00, also maintaining a “hold” rating.
Additionally, Jefferies Financial Group improved its target from C$181.00 to C$182.00 during the same week. Meanwhile, National Bankshares changed its rating from “outperform” to “sector perform” but increased the price target from C$173.00 to C$181.00. On the same day, Barclays raised its target from C$177.00 to C$181.00, giving it an “equal weight” rating.
As of now, the consensus rating for Bank of Montreal stands at “Hold,” with an average price target of C$182.75. Among analysts, one has rated the stock with a “Strong Buy,” two have given a “Buy,” and nine maintain a “Hold” rating.
Recent Financial Performance
The bank’s recent quarterly earnings results, announced on December 4, 2023, revealed an earnings per share (EPS) of C$3.28. The bank reported revenue of C$9.34 billion for the quarter, showcasing a net margin of 13.57% and a return on equity of 9.04%. Analysts project that Bank of Montreal will achieve an EPS of approximately C$9.65 for the current year, indicating solid financial health.
In addition, Bank of Montreal declared a quarterly dividend of $1.63, which was distributed to shareholders on November 26, 2023. This brings the annualized dividend to $6.52, yielding about 3.6%. The ex-dividend date was set for October 30, 2023, and the current payout ratio is approximately 56.29%.
Bank of Montreal operates as a diversified financial services provider in North America, with key segments including Canadian personal and commercial banking, U.S. P&C banking, wealth management, and capital markets. The adjustments in ratings and targets reflect ongoing evaluations of the bank’s performance and market conditions, underscoring its significance within the financial sector.
As analysts continue to monitor Bank of Montreal’s performance, updates on ratings and target prices will be closely watched by investors looking to gauge the bank’s future trajectory.
