The Globe and Mail reports in its Thursday, Jan. 29, edition that TD Cowen analyst Mario Mendonca has advanced his recommendation for Bank of Montreal to "buy" from "hold." The Globe's David Leeder writes in the Eye On Equities column that Mr. Mendonca share target soared $25 tp $209. Analysts on average target the shares at $187.08. Mr. Mendonca believes Bank of Montreal's return on equity gap with its peers will "narrow materially." Mr. Mendonca says in a note: "We view BMO's new time stamp (exit 2027 at 15 per cent) on ROE gains very favourably. Focusing on BMO-specific drivers (U.S. NIM, U.S. loan growth, PCLs [provisions for credit losses], and buybacks), we now expect BMO's ROE to climb 300bps higher over the next two years (below the target), outpacing the group by 150 basis points. We raised our estimates (approximately 9 per cent in 2027)." Mr. Mendonca notes that BMO has "long had an ROE disadvantage vs. peers," however, he is increasingly bullish after the bank recently changed its ROE guidance from 15 per cent in the medium term to 15 per cent exiting 2027. He adds, "We believe investors will pay closer attention to ROE progression toward management guidance of 15 per cent exiting 2027."