09:50 AM EDT, 05/29/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by USD3 to USD113, 12.3x our FY 2025 (Oct.) EPS view (USD9.21), a premium to BMO's five-year forward P/E average of 10.2x given expectations for improving bank efficiency. We lower our FY 2024 EPS estimate to CAD11.16 from CAD12.23 and FY 2025's to CAD12.56 from CAD13.04 as a higher-for-longer rate environment impacts credit quality. BMO posted adjusted Apr-Q EPS of CAD2.59 versus CAD2.93 a year ago, missing the CAD2.77 consensus. Weak earnings in the quarter were driven by elevated provisions for credit losses of CAD705 million as deterioration was identified in U.S. commercial real estate, transportation, and services. Still, capital markets revenue (+5%) rebounded to its highest level in five quarters given healthy client activity and record results in debt underwriting. Additionally, BMO returned to positive operating leverage with an adjusted efficiency ratio of 58.0%, and we expect last quarter's ratio of 60.9% to be the high-water mark for FY 2024.