What changed
$BMO — BUY 📊 | 6 MONTHS THESIS
🎯 latest | Rev $9.5B | EPS $3.67 vs $3.45 🟢
💡 Consensus expects elevated loan loss provisions to persist through 2025, keeping ROE below long-term average. Our variant view is that provisions will decline faster than modeled as rate cuts ease borrower stress, and BMO’s diversified revenue will sustain earnings, enabling a return to >13% ROE.
📉 Reward/risk: 2.44:1
🏢 Business Quality: 7/10 - Diversified North American bank with strong Canadian retail franchise, growing US presence, and solid capital markets arm; profitability above peers but sensitive to credit cycles.
📊 Valuation: cheap — trailing P/E 11.2x vs 5-year average 11.8x and peer average 11.5x; P/B 1.2x vs historical median 1.4x; 5.1% dividend yield supports downside.
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/BMO0620