TORONTO, May 22, 2026, 09:09 EDT
Canaccord Genuity kept a Buy rating on Bank of Montreal, giving the Canadian lender a fresh analyst endorsement less than a week before it reports quarterly results. TipRanks said Canaccord analyst Matthew Lee maintained the rating on BMO, whose shares had closed the previous session at C$216.82.
The timing matters. BMO is scheduled to release fiscal second-quarter results on May 27 at about 6 a.m. ET, while Toronto’s regular trading session had not yet opened at the dateline time; TSX regular trading runs from 9:30 a.m. to 4 p.m. ET.
The call also comes with Canadian bank stocks firm. Reuters reported that financial shares helped lift the S&P/TSX Composite Index on May 20, with the financial sector up 1.9% ahead of upcoming quarterly results.
BMO’s Toronto-listed shares closed May 21 at C$220.06, up 1.49%, just below a 52-week high of C$220.70. The stock is up 23.5% since the start of 2026, according to MarketBeat data.
The broader analyst tape is less clean. TradingView, citing FactSet estimates, said the average 12-month target for BMO had risen to $155.12 from $154.33, but it also showed a Hold consensus across 15 analysts, with four Buy ratings, eight Holds and three Sells.
BMO enters the earnings print with better credit numbers than a year earlier. In February, the bank reported first-quarter adjusted net income of C$2.55 billion, adjusted earnings of C$3.48 a share and provision for credit losses — money set aside for loans that may sour — of C$746 million, down from C$1.01 billion a year earlier. Its Common Equity Tier 1 ratio, a core measure of bank capital strength, was 13.1%. Chief Executive Darryl White said: “Credit is well-managed and in-line with our expectations.” BMO Newsroom
The quarter was helped by wealth management and capital markets, while BMO’s U.S. business also improved. Reuters said the bank beat profit estimates in February as credit provisions came in below expectations and revenue grew across all segments.
Management has also been pruning. On May 11, BMO agreed to sell its transportation finance and vendor finance businesses to Stonepeak, covering a combined loan and lease portfolio of about C$14.5 billion in the U.S. and Canada. BMO said the deal should lift its CET1 ratio by about 28 basis points, or 0.28 percentage point, though it expects a roughly C$900 million after-tax charge in the third quarter. Aron Levine, president of BMO U.S., said the bank was moving capital toward areas with “strong potential for long-term value creation.” BMO Newsroom
Other analyst calls show why the Canaccord rating is not a stand-alone signal. TipRanks data showed Bank of America Securities lifted its BMO target to C$224 from C$210 on May 19 but kept a Hold rating, while Raymond James raised its target to C$227 from C$214 on May 12 and kept a Buy. Jefferies, by contrast, kept BMO at Hold on May 20 with a C$196 target.
Lee’s coverage set also includes Bank of Nova Scotia and Toronto-Dominion Bank, putting BMO in the same Canadian bank basket where investors are weighing credit costs, U.S. exposure and how much room remains after a strong run in share prices.
But the trade has a clear risk. BMO said the Stonepeak transaction still needs regulatory approvals and may not deliver the expected capital and return benefits if closing conditions, business performance, economic conditions, interest rates or exchange rates move against it. The share rally also leaves less room for disappointment if May 27 results point to slower loan growth or a fresh build in credit reserves.
For now, Canaccord’s Buy call keeps BMO on the constructive side of the analyst ledger. The next test is no longer the rating; it is whether next week’s numbers support a stock already trading near its high.
