UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Lowers PT on Bank of Montreal Following Q2/13 Results

In a report published Thursday, BMO Capital Markets analyst John Reucassel reiterated a Market Perform rating on

, but lowered the price target from $66.00 to $65.00. In the report, BMO Capital Markets noted, “Results were shy of expectations mainly due to NIM compression; however, there was some other noise in the quarter including another restructuring charge and low interest rate charge in insurance. However, BMO reported another robust quarter in credit and strong capital (CET 1 of 9.7%). This should provide the bank with ample opportunities to re-purchase shares. We decreased our 2013E and 2014E cash operating EPS to $5.95 and $6.25, from $6.00 and $6.35 respectively, reflecting continued margin pressure in Canadian and U.S. P&C banking. Note that our historical (and projected) cash operating EPS do not include the credit recoveries on purchased impaired loans but these recoveries are recognized as a reduction in invested capital in M&I.” Bank of Montreal closed on Wednesday at $62.50.