Should I Buy BMO? BMO 2026 Analysis

Should You Buy Bank of Montreal (BMO) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

141.730

1 Day change

1.36%

52 Week Range

142.730

Analysis Updated At

2026/02/04

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Buy now (pre-market ~141.26): trend is bullish (stacked moving averages + positive/expanding MACD) and price is pressing a breakout zone.
Upside is favored if BMO holds above the pivot (~138.31) and can push through R2 ~142.86; the tape is already sitting near R1 ~141.12.
Options positioning is mixed but call volume dominates (bullish near-term sentiment) even as put open interest > call open interest (hedging).

Intellectia Proprietary Trading Signals

AI Stock Picker: No signal on given stock today.
SwingMax: No signal on given stock today.
Politicians / congress activity: no recent congress trading data available; insiders/hedge funds also show no strong recent tilt.

Technical Analysis

Trend: Bullish structure with SMA_5 > SMA_20 > SMA_200 (uptrend intact).
MACD: Histogram +0.189 and expanding → bullish momentum strengthening.
RSI (6): 64.5 → bullish/neutral (not a hard overbought reading yet), supportive for continuation.
Key levels:
- Pivot/support: 138.31 (important line to stay above)
- Support: 135.50, then 133.76
- Resistance: 141.12 (R1) is being tested; next 142.86 (R2) is the breakout target area.
Pattern-based odds provided: ~40% chance of +1.92% next day, +3.6% next month (directionally supportive, not a guarantee).

Options Data

Bearish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment read:
- Open Interest Put/Call = 1.23 → more puts outstanding (institutional hedging / cautious positioning).
- Volume Put/Call = 0.21 → today’s flow skewed to calls (near-term bullish trading).
Activity: Today’s option volume 111 vs 30-day avg (reported) shows elevated participation (5.88x).
Volatility: IV 30d 23.08 vs HV 15.92 and IV percentile 89.2 → options are priced rich; market is paying up for near-term movement (often around catalysts like earnings).

Technical Summary

Sell

Buy

Positive Catalysts

- Analyst catalyst: TD Securities upgraded to Buy (from Hold) and raised target to C$209, citing improved ROE trajectory (expects ROE to climb ~300 bps over two years).
- Earnings event ahead: QJAN 2026 earnings on 2026-02-27 (pre-market) can act as a momentum catalyst if credit/fees hold up.
- Technical momentum: bullish MA stack + expanding MACD supports follow-through if price clears ~142.86.

Neutral/Negative Catalysts

- Near resistance: price is already pressing R1 (~141.12); failure to clear R2 (~142.86) can stall upside short-term.
- Hedging overhang: put open interest exceeds call open interest (OI P/C 1.23), suggesting investors are still defending downside.
- Pre-earnings uncertainty: options are expensive (high IV percentile), implying the market expects a meaningful move around upcoming results.

Financial Performance

Latest quarter: 2025/Q4
- Revenue: $9.169B, +3.46% YoY (steady top-line growth).
- Net income: $2.125B, -1.12% YoY (slight profitability softness).
- EPS: 2.97, +0.68% YoY (modest EPS growth).
Overall: fundamentals look stable-to-slightly improving on revenue/EPS, but net income growth is not accelerating yet.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent trend: price targets have generally nudged higher across multiple firms, with the most notable change being TD’s upgrade to Buy (C$209).
What Wall Street likes:
- Improving ROE outlook and expectations for better performance versus peers.
- Prior quarter showed an earnings beat supported by better-than-expected credit losses and fees (per Barclays/BofA commentary).
What Wall Street is cautious about:
- Several firms remain Neutral / Equal Weight / Market Perform, implying upside may be more incremental unless execution improves further.
- View that some improvement (notably U.S. credit normalization) may be partly priced in.
Net take: bias is improving, led by TD’s upgrade, but consensus is still mixed (not a unanimous bullish street).

10 Analyst Rating

Wall Street analysts forecast BMO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BMO is 133.97 USD with a low forecast of 128.13 USD and a high forecast of 144.69 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

2 Buy

8 Hold

0 Sell

Hold

Current: 139.830

Low

128.13

Averages

133.97

High

144.69

Current: 139.830

Low

128.13

Averages

133.97

High

144.69

TD Securities

Mario Mendonca

Hold

Buy

upgrade

$C$209

AI Analysis

2026-01-27

Reason

TD Securities

Mario Mendonca

Price Target

$C$209

AI Analysis

2026-01-27

upgrade

Hold

Buy

Reason

TD Securities analyst Mario Mendonca upgraded Bank of Montreal to Buy from Hold with a C$209 price target.

TD Securities

Mario Mendonca

Hold

Buy

upgrade

$184 -> $209

2026-01-27

Reason

TD Securities

Mario Mendonca

Price Target

$184 -> $209

2026-01-27

upgrade

Hold

Buy

Reason

As previously reported, TD Securities analyst Mario Mendonca upgraded Bank of Montreal to Buy from Hold with a price target of C$209, up from C$184. BMO recently changed its return on equity guidance from 15% in the medium term to 15% exiting 2027, which the firm views "very favourably," the analyst tells investors. The firm now expect the bank's ROE to climb 300 basis points over the next two years, outpacing the group by 150 basis points, notes the analyst, who raised estimates.

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BMO Should I Buy

BMO Should I Buy

Should You Buy Bank of Montreal (BMO) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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