Analysts cut BMO shares after results disappoint

Analysts cut BMO shares after results disappoint

TORONTO (Reuters) - At slightest 4 analysts downgraded shares of Bank of Montreal on Wednesday, after it reported a weaker than approaching fourth-quarter distinction and warned of indolent conditions ahead.

Desjardins Securities analysts Michael Goldberg cut his rating on Canada's No. 4 bank to "hold" from "buy" and lowered his 12-month price target to C$68.50 from C$70, citing a reduce gain foresee and beating that BMO chose not to lift a pidend.

Bank of Montreal pronounced on Tuesday that a distinction rose 21 percent due to a merger of U.S. bank Marshall & Ilsley in July, though a formula fell brief of estimates, call investors to lift a shares down by 3.5 percent.

"The good news for BMO was that a M&I merger looks like a winner," wrote Goldberg. "The bad news was collateral markets were weak."

Shares of BMO, a usually large Canadian bank to skip estimates in a fourth quarter, were down another 1.8 percent during C$56.69 only before midday on Wednesday.

Mario Mendonca of Canaccord Genuity also cut BMO shares to "hold", while RBC Capital Markets' Andre-Philippe Hardy cut a batch to "sector perform" from "outperform".

Robert Sedran of CIBC World Markets cut a shares to "sector underperformer" from "sector performer", observant BMO's batch might have run a bit forward due to expectations it would repeat a opening from a third quarter, when a formula surfaced expectations.

"This bank stands as a disastrous outlier this time after being a certain outlier final time," Sedran pronounced in a note.

While he cut his rating on a shares, Sedran lifted his 12-month cost aim to C$63 from C$62.

Net distinction during a bank was C$897 million ($888 million), or C$1.34 a share, in a fourth quarter, finished Oct 31. That compared with a year-before distinction of C$739 million, or C$1.24.

Analysts foresee a formidable year forward as seductiveness margins are approaching to stay narrow, while a doubt surrounding a European debt predicament could bluster market-related income.

BMO cut a middle tenure annual EPS expansion design to a operation of 8-10 percent from 12 percent and has instituted a top-to-bottom cost examination in sequence to safety distinction expansion in a diseased income environment.

($1=$1.01 Canadian)

(Reporting By Cameron French; modifying by Rob Wilson)

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