What changed
$BMO — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $9.5B | EPS $3.67 vs $3.45 🟢
💡 Consensus priced in rising credit losses and margin compression, but BMO delivered strong capital markets and US segment performance; the market underappreciates the durability of earnings and the potential for improved operating leverage as rates stabilize.
📉 Reward/risk: 2.25:1
🏢 Business Quality: 7/10 - Diversified North American bank with leading Canadian retail and wealth franchises, growing US scale; strong balance sheet and dividend history, but cyclical sensitivity caps quality score.
📊 Valuation: cheap — P/E ~11.6x annualized Q1 vs. 5-year historical average ~12.5x, P/B ~1.7x vs.
🔮 Catalyst: Analyst estimate revisions and Q2 2025 earnings pre-announcement (May 2025)
💰 Entry: $170, stop $162, target $188
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/BMO0618