Analyst cuts price targets on TD Bank and BMO
BNN Bloomberg
A Bay Street analyst cut his ratings and targets on two Canadian banks Monday, and investors reacted by selling shares of each.
A Bay Street analyst cut his ratings and targets on two Canadian banks Monday, and investors reacted by selling shares of each.
The downgrades came from Gabriel Dechaine, a veteran bank analyst with National Bank of Canada, and were applied to shares of Toronto-Dominion Bank and Bank of Montreal.
Dechaine cut his rating on each bank to “sector perform” from “outperform” – similar to moving to a hold rating from a buy rating.
His price target on TD Bank was cut to $100 from $110 and his price target on BMO was cut to $151 from $163.
Both banks have announced huge acquisitions in the United States recently, and the regulatory path ahead for approval of those transactions was one reason for his reduced ratings and target prices.
On Feb. 28, TD Bank said it would acquire First Horizon Corp. for US$13.4 billion. In late December, BMO said it would pay US$16.3 billion for Bank of The West.
