UPDATE: BMO Capital Raises PT on Bank of Montreal Following Solid Q3/13 Results

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

, and raised the price target from $65.00 to $69.00. In the report, BMO Capital Markets noted, “Excluding $0.19 of unusually strong credit performance, BMO reported cash operating EPS of $1.53, up from $1.40 last year, and ahead of the consensus estimate of $1.52. The financial results and the conference call provided three important developments: first, BMO's Canadian business is now leveraging volume growth into revenue growth; second, management clearly articulated a total payout ratio of 60% (45-50% dividend payout and 10-15% of earnings used for buyback) that resonates well with investors; and third, BMO operates with a strong CET1 ratio (9.6%) and an industry-leading leverage ratio (3.7% - our estimate) that should protect the bank from new regulatory developments.” Bank of Montreal closed on Tuesday at $62.93.