UPDATE: Stifel Nicolaus Initiates Bank of Montreal at Hold on Slow EPS Growth Outlook

Stifel Nicolaus initiated its coverage on Bank of Montreal BMO with a Hold rating. Stifel Nicolaus said, "Despite a strong dividend yield, our Hold rating reflects the company's slower reported EPS growth prospects relative to its Canadian bank peers due to the company's high operating efficiency ratio. … With the company's revenue-to-average loan ratio consistently in line/greater than the rest of the Canadian banks, it appears to us that the company's efficiency issues are tied to its high expense base rather than low revenue generation. We need to see progress on the efficiency ratio before reported EPS growth improves to industry levels and we can become more constructive on the shares." Bank of Montreal closed at $58.21 on Monday.