BMO Rebuilding ROE: RBC Capital Says Bank on Right Track

Bank of Montreal (BMO) is on the right track to rebuild its return on equity (ROE), according to RBC Capital. The bank serves over 13 million customers across North America and provides a range of banking, wealth management, and investment services. BMO's Personal and Commercial Banking, Wealth Management, and Capital Markets operating groups work together to provide services to individuals, families, businesses, and institutions. The bank is focused on rebuilding its ROE and has been making progress in this area.

Bank of Montreal (BMO) reported robust third-quarter financial results, with earnings per share (EPS) of $2.35, surpassing the analyst consensus estimate of $2.12 [1]. The bank's revenue for the quarter stood at $6.542 billion, indicating solid revenue performance and effective expense management. CEO Darryl White highlighted the bank's disciplined execution against its return on equity (ROE) rebuild strategies, noting improvements in operating leverage and credit performance, particularly in the U.S. businesses [1].

Following the earnings announcement, analysts at RBC Capital and Scotiabank revised their price targets for BMO. RBC Capital analyst Darko Mihelic maintained an Outperform rating and raised the price target from $161 to $168. Scotiabank analyst Mike Rizvanovic also maintained the stock with a Sector Perform rating but raised the price target from C$148 to C$16 [1].

BMO's stock price reacted modestly to the earnings report, declining by 0.2% to $119.16 on Wednesday [1]. Despite the slight dip, the positive analyst sentiment reflects the bank's progress in rebuilding its ROE and improving profitability across its U.S. businesses.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/price-target/25/08/47367237/bank-of-montreal-analysts-boost-their-forecasts-after-q3-results