UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Bank of Montreal

In a report published Wednesday, BMO Capital Markets reiterated its Market Perform rating on Bank of Montreal BMO, and raised its price target from $59.00 to $62.00. BMO Capital noted, “Decent results were driven by trading gains, credit and taxes offset by spread compression and weaker operating leverage. The bank regained some loan growth momentum in Canada and the outlook for core loan growth in the U.S. remains constructive. The dividend increase was a positive surprise and the reduced payout ratio range (40-50% from 45-55%) is not surprising given the prevailing regulatory environment. Capital and credit were both healthy. The integration of M&I is proceeding well.” Bank of Montreal closed on Tuesday at $57.93.