Update shared on27 Aug 2025
Fair value Increased 3.27%Despite a reduction in consensus revenue growth forecasts, a higher anticipated future P/E multiple has driven an increase in Bank of Montreal’s analyst price target from CA$158.53 to CA$163.71.
What's in the News
- Bank of Montreal (BMO) and Royal Bank of Canada (RBC) are exploring the sale of their Canadian payments joint venture, Moneris Solutions, in a deal that could value the business at up to $2 billion; the process is in early stages and a sale is not guaranteed (Reuters, Key Developments, 2025-08-14).
- BMO is considering selling its transportation finance business, which holds about $11 billion in assets and could be valued around $1 billion, though no final decision has been made (Key Developments, 2025-08-13).
- The Board of Directors authorized a normal course issuer bid allowing BMO to repurchase up to 30 million shares (4.19% of issued share capital) over one year, pending regulatory approval (Key Developments, 2025-08-26).
- BMO announced the launch of the BMO Escape Credit Card with significant travel-related rewards and benefits, targeting frequent travelers (Key Developments, 2025-08-18).
- BMO is redeeming all outstanding Series 33 Preferred Shares for a total of $200 million on August 25, 2025, following regulatory approval, and its preferred share issue (BMO.PRY) was dropped from the S&P/TSX Preferred Share Index (Key Developments, 2025-07-08, 2025-08-07).
Valuation Changes
Summary of Valuation Changes for Bank of Montreal
- The Consensus Analyst Price Target has risen slightly from CA$158.53 to CA$163.71.
- The Consensus Revenue Growth forecasts for Bank of Montreal has fallen from 7.5% per annum to 6.8% per annum.
- The Future P/E for Bank of Montreal has risen slightly from 14.05x to 14.48x.
Disclaimer
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