Acquisition & Strong Results Drive Upgrade
Bank of Montreal has been witnessing rising earnings estimates driven by announcement of an acquisition as well as strong fiscal second quarter 2016 (ended Apr 30) results. Moreover, the company hiked its quarterly dividend by 2.4%.
On Jun 2, Bank of Montreal had announced the signing of a definitive agreement to acquire Minneapolis-based premier boutique M&A advisory firm, Greene Holcomb Fisher. While the terms of the deal were not disclosed, it is expected to close by Oct 31, 2016. Notably, the regulatory approvals are still awaited.
Perry Hoffmeister, Global Head of Investment & Corporate Banking, BMO Capital Markets, said "GHF is highly complementary to our U.S. strategy and our focus on the mid-cap space. The transaction underscores our commitment to effectively serve our U.S. clients by deepening our Midwest footprint, growing our U.S. M&A business and strengthening our client focus on the industry sectors that we cover."
Further, Bank of Montreal's fiscal second quarter 2016 results depicted strength with 1% year over year rise in adjusted earnings due to improved revenues. Further, the stock has appreciated over 13% so far this year.
BANK MONTREAL Price
Driven by these positive developments, the analysts are bullish on the stock. Therefore, over the last 30 days, the Zacks Consensus Estimate increased 1.3% to $5.30 for 2016 and 1.6% to $5.55 for 2017.
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