Bank of Montreal: RBC Capital Maintains Outperform, Raises PT to $168.

Bank of Montreal: RBC Capital Maintains Outperform, Raises PT to $168.

Bank of Montreal (BMO) continues to receive favorable analyst ratings, with RBC Capital maintaining an "Outperform" recommendation and raising its price target to $168, according to a recent research note [3]. This update comes as BMO reported strong Q3 2025 earnings, with EPS of $2.33, exceeding market expectations of $2.12 [3].

BMO's recent performance has been bolstered by a 22% increase in EPS to $3.23 and net income of $2.4 billion, the highest quarter on record. The company's pre-provision pretax earnings of $4 billion were up 13%, driven by strong contributions from all operating groups. The bank's CET1 ratio of 13.5% remains robust, supporting its capitalization strategy and share buybacks [3].

RBC Capital's revised price target reflects the bank's improved earnings and the potential for continued growth in its various business segments, including Canadian personal and commercial banking, U.S. P&C banking, wealth management, and capital markets. The analyst also noted that BMO's recent acquisition of Burgundy Asset Management and organizational restructuring in U.S. banking are strategic moves that could drive future growth [3].

BMO's stock has seen a steady increase in recent months, trading at approximately C$158.68 as of July 2, 2025. The company's market capitalization stands at C$114.93 billion, with a 12-month price range between C$109.22 and C$158.72 [1]. The stock has a 50-day moving average of C$153.41 and a 200-day moving average of C$144.22 [1].

Despite the positive analyst outlook, BMO's stock remains subject to market risks and geopolitical uncertainties. The bank's management has acknowledged the challenges posed by higher interest rates, tariffs, and trade-related risks to the North American economy [3]. However, the company's resilient performance and strategic initiatives suggest that it is well-positioned to navigate these challenges and continue delivering strong results.

References:
[1] https://www.marketbeat.com/instant-alerts/bank-of-montreal-tsebmo-receives-average-recommendation-of-hold-from-analysts-2025-08-23/
[2] https://www.tipranks.com/news/the-fly/bank-of-montreal-announces-new-30m-share-normal-course-issuer-bid-thefly
[3] https://www.insidermonkey.com/blog/bank-of-montreal-nysebmo-q3-2025-earnings-call-transcript-1598180/