UPDATE: Credit Suisse Upgrades Bank of Montreal to Outperform

Credit Suisse raises its rating on Bank of Montreal

to Outperform from Neutral on low Canadian exposure as well as good EPS and expense outlook. Credit Suisse says, "We like: (1) BMO's relatively low Canadian consumer exposure; (2) good visibility on 2013 EPS growth due to the bulk of M&I expense synergies materializing; and (3) potential for relatively strong expense performance in Canadian retail banking. On the other hand, BMO has not provided leverage to rebounding commercial loan growth in Canada or in the U.S. However, with the stock trading at an 8% forward P/E discount (relative to a historical in-line multiple), we believe these performance issues are reflected in valuation and street sentiment (i.e. only 2 Outperform ratings on the stock, including our own)." BMO closed at $58.45 a share yesterday.