BMO Upgraded to Buy, CM Downgraded to Hold by Scotiabank
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 01 2026
0mins
Source: seekingalpha
- BMO Upgrade: Bank of Montreal (BMO) was upgraded to Buy-equivalent by Scotiabank, reflecting its resilience against macroeconomic pressures and strong potential for increased lending volumes in the U.S., which is expected to enhance future profitability.
- CM Downgrade: Canadian Imperial Bank of Commerce (CM) was downgraded to Hold-equivalent, as its consistent outperformance relative to peers is anticipated to moderate in the coming quarters, indicating reduced upside in net interest margins.
- Strong Earnings Performance: In fiscal Q2 2026, all major Canadian banks reported an across-the-board EPS beat, showcasing robust performance in market-sensitive businesses and steady gains in fee-based revenue, indicating manageable credit costs at this stage of the credit cycle.
- Optimistic Future Outlook: Scotiabank maintains a positive bias on the EPS trajectory for large banks, expecting continued improvement in profitability through fiscal 2027, with National Bank of Canada identified as a top pick among large banks for potential medium-term catalysts.
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Analyst Views on BMO
Wall Street analysts forecast BMO stock price to fall
10 Analyst Rating
2 Buy
8 Hold
0 Sell
Hold
Current: 169.840
Low
128.13
Averages
133.97
High
144.69
Current: 169.840
Low
128.13
Averages
133.97
High
144.69
About BMO
Bank of Montreal (the Bank) is a North American bank. The Bank provides a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services. The Bank serves about 13 million customers across North America, and in select markets globally, through three integrated operating groups: Personal and Commercial Banking (P&C), BMO Wealth Management and BMO Capital Markets. The P&C operating group represents the sum of its two retail and commercial operating segments, Canadian Personal and Commercial Banking (Canadian P&C) and U.S. Personal and Commercial Banking (U.S. P&C). BMO Wealth Management serves a full range of clients, from individuals and families to business owners and institutions, offering a wide spectrum of wealth, asset management and insurance products and services. BMO Capital Markets offers a comprehensive range of products and services to corporate, institutional and government clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BMO Recognized as Best Bank in North America and Western U.S.
- Recognition Awards: BMO has been honored by Global Finance as the Best Bank in North America, Best Bank in the Western U.S., and Best Bank for Transaction Banking in North America, showcasing its strong performance and growth momentum in key markets.
- Digital Innovation: BMO's leadership in artificial intelligence and digital payments has deepened client relationships and enhanced innovative banking experiences, significantly improving customer satisfaction and competitive positioning in the market.
- Technology Investments: Continuous investments in technology and innovation, particularly embedding AI in client engagement and risk management, have driven faster decision-making and deeper insights, enhancing the connectivity of financial services.
- AI Talent Development: BMO has gained global recognition for its AI talent development, with an adoption rate exceeding 96%, and is advancing AI and quantum innovation through the BMO Institute for Applied AI and Quantum, improving operational efficiency and client experiences.
See More
Treasury Yields Rise as Fed Holds Rates Steady Amid Mixed Market Reactions
- Yield Curve Dynamics: Following the Fed's decision to hold rates steady, the two-year Treasury yield rose to 4.18%, indicating that the market has brought forward expectations for future rate hikes, although strategists remain divided on the sustainability of this trend, which could impact investor confidence.
- Divergent Market Reactions: Bank of America strategists anticipate a further narrowing of the gap between two-year and ten-year Treasury yields, suggesting a more cautious outlook on inflation that may lead investors to reassess their risk appetite in the current environment.
- Geopolitical Influences: Fundstrat analysts noted that while the spike in two-year yields appears exaggerated, improving geopolitical conditions, particularly regarding Iran, could significantly sway market sentiment and expectations.
- Energy Price Correlation: BMO strategists highlighted that Treasury trading is heavily influenced by energy prices, especially following the U.S.-Iran agreement, which may lead to a decrease in long-term Treasury yields and affect overall market liquidity.
See More
High Tide Inc Reports Record Q2 Earnings with 30% Revenue Growth
- Significant Revenue Growth: High Tide Inc reported a record revenue of $179.3 million in Q2, reflecting a 30% year-over-year increase, marking the fastest growth rate in 11 quarters and indicating strong market performance and expansion potential.
- Record Gross Margin: The company achieved a gross profit of $48.4 million with a gross margin of 27%, the highest in eight quarters, showcasing improved profitability in its medical cannabis distribution segment, particularly in the German market.
- Strong Membership Growth: Cabana Club membership reached 2.65 million, up 39% year-over-year, with elite memberships soaring by 84%, which not only enhances customer loyalty but also lays a solid foundation for future sales growth.
- Enhanced Financial Flexibility: High Tide secured a $40 million credit facility with Bank of Montreal, boosting its financial flexibility; despite free cash flow being $1.5 million, the company is actively investing to support future expansion plans.
See More
BMO Releases 2026 Indigenous Partnerships Report
- Ongoing Reconciliation Efforts: BMO's 2026 report highlights collaboration with Indigenous communities, emphasizing the importance of building relationships and shared learning to advance reconciliation, showcasing the company's ongoing commitment and actions in this area.
- Economic Participation Achievements: The report notes that BMO has provided $18 billion in Indigenous banking services, supporting over 300 Indigenous communities in achieving economic growth, demonstrating significant impact in promoting economic empowerment.
- Training and Engagement: BMO has delivered training and engagement initiatives to 1,376 employees and 692 external participants, indicating the company's efforts in education and employment aimed at strengthening connections and trust with Indigenous communities.
- Accountability and Leadership: The report underscores how BMO embeds reconciliation through its Reconciliation Action Plan and Office of Reconciliation, ensuring ongoing coordination and accountability to foster long-term collaboration and development with Indigenous communities.
See More
BMO and Other Financial Giants Reach New Stock Highs
- Market Rebound Signal: On Friday, BMO, Astronics, DaVita, and Intercorp Financial all reached new stock highs, indicating signs of market stabilization and recovery after recent volatility, which may attract more investor interest.
- BMO's Strong Performance: As one of Canada's largest banks, BMO's stock increase reflects its robust financial performance and market confidence, potentially further boosting its market share in the financial services sector.
- Astronics Growth Momentum: The new high in Astronics' stock price indicates sustained demand in the aerospace electronics and power systems sectors, enhancing the company's competitiveness in the recovering aviation industry.
- DaVita and Intercorp's Market Performance: The stock price increases for DaVita and Intercorp Financial demonstrate a strong recovery in the healthcare and financial services industries, potentially providing new investment opportunities for investors.
See More
Canada to Release April Trade Data
- Data Release Timing: Canada is set to release its international merchandise trade data for April at 8:30 a.m. ET, which is expected to provide insights into the latest trade dynamics and the health of the economy.
- Market Impact: The release of this data could influence investor sentiment towards the Canadian dollar, particularly amid increasing global economic uncertainty, as the market closely monitors changes in the trade balance.
- Economic Indicator: International merchandise trade data serves as a crucial indicator for assessing national economic performance, reflecting changes in exports and imports, and providing essential insights for policymakers.
- Investor Focus: As the trade data is released, investors and analysts will analyze the underlying trends to forecast future economic directions and potential policy adjustments.
See More
BMO Recognized as Best Bank in North America and Western U.S.
- Recognition Awards: BMO has been honored by Global Finance as the Best Bank in North America, Best Bank in the Western U.S., and Best Bank for Transaction Banking in North America, showcasing its strong performance and growth momentum in key markets.
- Digital Innovation: BMO's leadership in artificial intelligence and digital payments has deepened client relationships and enhanced innovative banking experiences, significantly improving customer satisfaction and competitive positioning in the market.
- Technology Investments: Continuous investments in technology and innovation, particularly embedding AI in client engagement and risk management, have driven faster decision-making and deeper insights, enhancing the connectivity of financial services.
- AI Talent Development: BMO has gained global recognition for its AI talent development, with an adoption rate exceeding 96%, and is advancing AI and quantum innovation through the BMO Institute for Applied AI and Quantum, improving operational efficiency and client experiences.
See More
Treasury Yields Rise as Fed Holds Rates Steady Amid Mixed Market Reactions
- Yield Curve Dynamics: Following the Fed's decision to hold rates steady, the two-year Treasury yield rose to 4.18%, indicating that the market has brought forward expectations for future rate hikes, although strategists remain divided on the sustainability of this trend, which could impact investor confidence.
- Divergent Market Reactions: Bank of America strategists anticipate a further narrowing of the gap between two-year and ten-year Treasury yields, suggesting a more cautious outlook on inflation that may lead investors to reassess their risk appetite in the current environment.
- Geopolitical Influences: Fundstrat analysts noted that while the spike in two-year yields appears exaggerated, improving geopolitical conditions, particularly regarding Iran, could significantly sway market sentiment and expectations.
- Energy Price Correlation: BMO strategists highlighted that Treasury trading is heavily influenced by energy prices, especially following the U.S.-Iran agreement, which may lead to a decrease in long-term Treasury yields and affect overall market liquidity.
See More
High Tide Inc Reports Record Q2 Earnings with 30% Revenue Growth
- Significant Revenue Growth: High Tide Inc reported a record revenue of $179.3 million in Q2, reflecting a 30% year-over-year increase, marking the fastest growth rate in 11 quarters and indicating strong market performance and expansion potential.
- Record Gross Margin: The company achieved a gross profit of $48.4 million with a gross margin of 27%, the highest in eight quarters, showcasing improved profitability in its medical cannabis distribution segment, particularly in the German market.
- Strong Membership Growth: Cabana Club membership reached 2.65 million, up 39% year-over-year, with elite memberships soaring by 84%, which not only enhances customer loyalty but also lays a solid foundation for future sales growth.
- Enhanced Financial Flexibility: High Tide secured a $40 million credit facility with Bank of Montreal, boosting its financial flexibility; despite free cash flow being $1.5 million, the company is actively investing to support future expansion plans.
See More
BMO Releases 2026 Indigenous Partnerships Report
- Ongoing Reconciliation Efforts: BMO's 2026 report highlights collaboration with Indigenous communities, emphasizing the importance of building relationships and shared learning to advance reconciliation, showcasing the company's ongoing commitment and actions in this area.
- Economic Participation Achievements: The report notes that BMO has provided $18 billion in Indigenous banking services, supporting over 300 Indigenous communities in achieving economic growth, demonstrating significant impact in promoting economic empowerment.
- Training and Engagement: BMO has delivered training and engagement initiatives to 1,376 employees and 692 external participants, indicating the company's efforts in education and employment aimed at strengthening connections and trust with Indigenous communities.
- Accountability and Leadership: The report underscores how BMO embeds reconciliation through its Reconciliation Action Plan and Office of Reconciliation, ensuring ongoing coordination and accountability to foster long-term collaboration and development with Indigenous communities.
See More
BMO and Other Financial Giants Reach New Stock Highs
- Market Rebound Signal: On Friday, BMO, Astronics, DaVita, and Intercorp Financial all reached new stock highs, indicating signs of market stabilization and recovery after recent volatility, which may attract more investor interest.
- BMO's Strong Performance: As one of Canada's largest banks, BMO's stock increase reflects its robust financial performance and market confidence, potentially further boosting its market share in the financial services sector.
- Astronics Growth Momentum: The new high in Astronics' stock price indicates sustained demand in the aerospace electronics and power systems sectors, enhancing the company's competitiveness in the recovering aviation industry.
- DaVita and Intercorp's Market Performance: The stock price increases for DaVita and Intercorp Financial demonstrate a strong recovery in the healthcare and financial services industries, potentially providing new investment opportunities for investors.
See More
Canada to Release April Trade Data
- Data Release Timing: Canada is set to release its international merchandise trade data for April at 8:30 a.m. ET, which is expected to provide insights into the latest trade dynamics and the health of the economy.
- Market Impact: The release of this data could influence investor sentiment towards the Canadian dollar, particularly amid increasing global economic uncertainty, as the market closely monitors changes in the trade balance.
- Economic Indicator: International merchandise trade data serves as a crucial indicator for assessing national economic performance, reflecting changes in exports and imports, and providing essential insights for policymakers.
- Investor Focus: As the trade data is released, investors and analysts will analyze the underlying trends to forecast future economic directions and potential policy adjustments.
See More
