Should I Buy BMO? BMO 2026 Analysis

Should You Buy Bank of Montreal (BMO) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

141.400

1 Day change

1.56%

52 Week Range

141.630

Analysis Updated At

2026/01/28

BUY for a beginner long-term investor right now. The trend is bullish (moving averages stacked upward and MACD expanding), analysts are getting more constructive (notably TD’s upgrade with a higher target), and recent results show modest top-line and EPS growth. Price is near resistance and RSI is elevated, but given the user is impatient and wants long-term exposure, BMO is a reasonable buy at current levels rather than waiting for a perfect pullback.

Technical Analysis

Price/Trend: Bullish. Moving averages are positively aligned (SMA_5 > SMA_20 > SMA_200), indicating an established uptrend. Momentum: MACD histogram is +0.308 and expanding, confirming strengthening upside momentum. RSI_6 is 70.888 (elevated), suggesting the stock is somewhat extended short-term (risk of brief consolidation/pullback), but not a trend-break signal by itself. Key levels: Pivot 136.05 is the near-term line to hold. Immediate resistance R1 is 139.69 (current price 138.69 is close), then R2 at 141.939. Supports are S1 132.409 and S2 130.16. Pattern-based short-horizon odds (from provided model): mild near-term chop is possible (next week bias negative), but next month is slightly positive. Intellectia Proprietary Trading Signals - [AI Stock Picker](module://ai_stock_pick): No signal on given stock today. - [SwingMax](module://swingmax): No signal on given stock today.

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment read-through: Open interest put/call of 1.23 suggests more outstanding put positioning than calls (somewhat cautious/hedged). However, today’s option volume put/call of 0.21 shows call volume dominating put volume, implying near-term bullish trading appetite. Volatility: 30D IV is 23.08 vs historical volatility 15.92, and IV percentile is very high (89.2). Options are pricing elevated uncertainty (often seen ahead of events like earnings), which can reflect anticipation of a catalyst or simply richer hedging demand. Activity: Today’s volume vs 30-day average is 5.88x, indicating unusually active options trading (heightened attention).

Technical Summary

Sell

Buy

Positive Catalysts

Analyst sentiment improving: TD Securities upgraded to Buy (2026-01-27) and raised its target materially (to C$209), citing favorable ROE guidance trajectory and expectation of meaningful ROE improvement over the next two years.
Earnings catalyst ahead: Next earnings (QJAN 2026) on 2026-02-27 pre-market can re-rate the stock if credit quality, NII/fees, and U.S. operations trends stay constructive.
Technical trend support: Uptrend confirmed by moving averages and strengthening MACD supports continued longer-term momentum.

Neutral/Negative Catalysts

Short-term overextension risk: RSI is elevated and price is close to resistance (139.69), increasing odds of a brief pause/pullback even within an uptrend.
Options market hedging tone: Put-heavy open interest (PCR 1.23) signals some investors remain defensive.
No supportive near-term news flow: No news in the last week; absent fresh catalysts, the stock may drift/consolidate until earnings.
Model-implied near-term softness: Provided pattern odds suggest a slightly negative bias over the next week.

Financial Performance

Latest quarter: 2025/Q4. Revenue: 9.169B, +3.46% YoY (steady growth). Net income: 2.125B, -1.12% YoY (slight decline). EPS: 2.97, +0.68% YoY (modest improvement). Overall: Results show stable revenue growth and slightly improving EPS despite a small net income dip—consistent with a mature bank profile rather than high-growth, but supportive for long-term compounding if ROE continues to improve.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: Ratings and targets have been edging higher. Key changes: TD Securities upgraded to Buy from Hold on 2026-01-27 with a higher target (C$209 vs prior C$184), pointing to improved ROE path. Scotiabank modestly raised its target (Sector Perform). BofA stayed Neutral but lifted its target after a Q4 beat; Canaccord maintained Buy and raised targets; Barclays remained Equal Weight with a higher target. Wall Street pros: improving ROE outlook, better-than-expected recent quarter dynamics (fees/credit), and an upward drift in targets. Wall Street cons: some firms remain neutral/market-perform, implying upside may be more incremental and partly priced in, especially around U.S. credit normalization. Influential/political trading: No recent Congress trading data available; hedge fund and insider activity show no significant recent trend (both Neutral).

10 Analyst Rating

Wall Street analysts forecast BMO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BMO is 133.97 USD with a low forecast of 128.13 USD and a high forecast of 144.69 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Buy

8 Hold

0 Sell

Hold

Current: 139.230

Low

128.13

Averages

133.97

High

144.69

Current: 139.230

Low

128.13

Averages

133.97

High

144.69

TD Securities

Mario Mendonca

Hold

Buy

upgrade

$C$209

AI Analysis

2026-01-27

New

Reason

TD Securities

Mario Mendonca

Price Target

$C$209

AI Analysis

2026-01-27

New

upgrade

Hold

Buy

Reason

TD Securities analyst Mario Mendonca upgraded Bank of Montreal to Buy from Hold with a C$209 price target.

TD Securities

Mario Mendonca

Hold

Buy

upgrade

$184 -> $209

2026-01-27

New

Reason

TD Securities

Mario Mendonca

Price Target

$184 -> $209

2026-01-27

New

upgrade

Hold

Buy

Reason

As previously reported, TD Securities analyst Mario Mendonca upgraded Bank of Montreal to Buy from Hold with a price target of C$209, up from C$184. BMO recently changed its return on equity guidance from 15% in the medium term to 15% exiting 2027, which the firm views "very favourably," the analyst tells investors. The firm now expect the bank's ROE to climb 300 basis points over the next two years, outpacing the group by 150 basis points, notes the analyst, who raised estimates.

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BMO Should I Buy

BMO Should I Buy

Should You Buy Bank of Montreal (BMO) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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