 | Bank of Montreal - BMO.t is a highly diversified financial services provider based in North America. With total assets of $537 billion and approximately 45,500 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. In the United States, BMO serves customers through BMO Harris Bank. |  |
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The Globe and Mail reports in its Wednesday edition that Barclays analyst John Aiken says the decline in valuations of Canadian banks amid housing concerns is overdone. The Globe's David Leeder writes in the Eye On Equities column that in a research note previewing second quarter earnings season, Mr. Aiken upgraded his rating for Bank of Montreal ($95.13) to "equal weight" from "underweight" with a $98 share target price, up from $95. Analysts on average target the shares at $105.41. Mr. Aiken says in a note: "We upgraded BMO on the back of its exposure to U.S. retail and commercial lending which should generate lending growth ahead of peers and also allow it to enjoy margin expansion to a greater degree than its peers. However, we believe that its relative valuation could be at risk, reflected in a lower target multiple (on 2018) than its current trading implies (on 2017)." Citi analyst Ian Sealey hiked his rating Bank of Montreal to "buy" from "neutral." He targeted the shares at $110. In the item he noted, "BMO has a leading market share in Canadian corporate lending and we believe it is well placed to capture volume benefits from a relevering of Canadian corporates." The shares were then trading at $92.74.
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