BMO Should I Buy
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Bank of Montreal (BMO) is not a strong buy at this time for a beginner investor with a long-term strategy. While the stock has positive long-term catalysts such as improving return on equity guidance and favorable analyst upgrades, the recent price performance (-2.46% regular market change) and lack of significant short-term trading signals suggest it is better to hold off for now. The technical indicators are neutral to slightly bullish, but the absence of strong momentum and mixed financial performance make this stock a 'hold' rather than a 'buy' under the current conditions.
The MACD is positive but contracting, RSI is neutral at 44.733, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support is at 136.741, and resistance is at 145.183. The stock is trading near its pivot point (140.962), indicating no clear breakout or breakdown trend.
Analyst upgrades with higher price targets (e.g., TD Securities raised to Buy with a C$209 target). Improved return on equity guidance to 15% by 2027, expected to outpace peers. Revenue growth of 3.46% YoY in Q4 2025.
EPS growth was minimal at 0.68% YoY. Lack of recent news or significant trading trends. Hedge funds and insiders are neutral, showing no strong buying interest.
In Q4 2025, revenue increased by 3.46% YoY to $9.17B, but net income dropped by -1.12% YoY to $2.13B. EPS showed marginal growth of 0.68% YoY to 2.97. Gross margin remained unchanged.
Recent analyst upgrades include TD Securities upgrading to Buy with a C$209 price target, citing improved return on equity guidance. Other analysts have raised price targets (e.g., Scotiabank to C$191, Canaccord to C$201), but some maintain neutral or sector perform ratings, reflecting mixed sentiment.
