03:10 PM EDT, 05/28/2025 (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:

After reviewing Apr-Q earnings, we maintain our 12-month target price at CAD156, 12.0x our FY 26 (Oct.) EPS view, a premium to BMO's five-year forward P/E average of 9.9x given expectations for improving efficiency in the bank's U.S. operations. We reduce our FY 25 EPS estimate to CAD11.41 from CAD11.44 and bump up FY 26's to CAD13.02 from CAD12.85. We applaud BMO's efforts to rebuild the bank's ROE and expect an improved profile by 2026. However, this improvement is likely to come at the cost of growth, and we note both loan and deposit balances fell sequentially in U.S. Personal & Commercial Banking in Q2 2025. Additionally, we have not yet seen enough evidence to conclude that BMO's credit woes are in the rearview. Still, BMO is likely to benefit from continued momentum in wealth management as both AUM and AUA grew at a double-digit clip. With BMO increasing its quarterly dividend by CAD0.04 to CAD1.63, shares yield a healthy 4.4%.