TD Securities Lifts Price Target on Bank of Montreal (BMO) while Holding Rating Steady

Bank of Montreal (NYSE:BMO) is included among the 15 Global Dividend Stocks to Diversify Your Portfolio.

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On December 5, TD Securities raised its price target on Bank of Montreal (NYSE:BMO) to C$184 from C$182 and kept a Hold rating on the shares.

Bank of Montreal reported higher fourth-quarter profit, driven largely by a rebound in dealmaking and stronger equity markets. Its capital markets unit benefited the most from this shift. Strong crude oil exports and increased government spending helped Canada avoid the worst effects of US President Donald Trump’s tariff policy. Those tariffs continue to weigh on sectors such as steel and aluminum, but the broader economy has shown resilience.

Loan growth remains under pressure as uncertainty tied to US trade policy lingers. That has pushed Canada’s largest banks, including BMO, to lean more heavily on fee-based businesses to support growth. Profit at Bank of Montreal (NYSE:BMO)’s capital markets unit more than doubled to C$521 million, up from C$251 million a year earlier. Higher revenue from global market activity, along with stronger investment and corporate banking results, drove the increase.

Provision for credit losses fell to C$755 million from C$1.52 billion last year. That decline points to improved confidence in credit quality.

Separately, Bloomberg reported that Steve Thom will retire as head of global credit trading at Bank of Montreal (NYSE:BMO), according to people familiar with the matter. Thom joined the bank five years ago as a managing director. BMO has been reshaping its capital markets division through a mix of new appointments and job cuts. The unit generated about C$2 billion in earnings on C$7.5 billion in revenue during fiscal 2025, based on figures from the bank’s annual report.

Bank of Montreal (NYSE:BMO) provides a broad range of personal and business banking services, including deposit accounts, lending products, credit cards, and other financial solutions.

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