The Globe and Mail reports in its Tuesday, June 8, edition that Credit Suisse analyst Mike Rizvanovic is keeping his "outperform" recommendation for Bank of Montreal intact. The Globe's David Leeder writes in the Eye On Equities column that Mr. Rizvanovic jacked his share target up by $7 to $131. Analysts on average target the shares at $133.59. Mr. Rizvanovic says in a note: "The Canadian banks put up another strong quarter with an across-the-board EPS beat that was once again anchored predominately by lower PCLs. With the economic outlook in both Canada and the U.S. improving further since the end of Q2 (both GDP growth and unemployment rate expectations), and no major signs of concern in Canadian insolvency trends, we have revised our PCL estimates lower for the group through F2022 as we incorporate a higher level of reversals on performing loan reserves. Based on our closer look at trends in write-offs and the relative change in balance sheet reserves since the onset of the pandemic, we believe that consensus PCL expectations through F2022 are too high, particularly for BMO, CM, and NA."
© 2021 Canjex Publishing Ltd. All rights reserved.