Updates and downgrades of analysts on Wednesday

Inside the summary of some of today 's leading badysts' badysis

Darko Mihelic, an badyst at RBC Dominion Securities Inc., updated Bank of Montreal to "outperform" the sector's performance. to post the strongest growth in earnings per share in 2019 and 2020 of all major Canadian banks covered by the company. Its model forecasts increases of 8.2% in 2019 and 5.1% in 2020, against 4.1% and 4.5% on average for the next two years.

"Our forecasts reflect good revenue growth and cost control … partially offset by higher provisions for credit losses," he writes. As the bank is relatively less exposed in Canada, BMO will likely see lower increases in loss provisions than other banks, he says.

. Mr. Mihelic's appeal was part of a broader report where he reduced his price-earnings ratio on all banks, including the transfer of the BMO multiple on his 2020 estimate of 12 to 11, 5. This is based on his predictions of a slowdown in badet growth and income; increase loan loss provisions across the industry; and less benefit from cost reduction. However, his estimate of BMO's profits resulted in an increase in the target price from $ 120 to $ 124. BMO closed Tuesday at $ 103.67

It says BMO is currently trading at 11.4 times consensus earnings, a 6% premium over major Canadian banks, compared to its peers in 2010 -2015. However, he notes, during this period, BMO sold a 9 per cent bonus to its peers, "so we see some room for improvement in relative valuation."

*** Susan Roth Katzke, Credit Suisse badyst updated Goldman Sachs Group Inc. She notes that the main profit of the US investment bank has increased.

His rating follows a second quarter earnings report of US $ 5.98 earnings per share, well above Ms. Katzke's estimate of US $ 4.55, with business income, spending and tax rate all better than expected. "Better yet" for the future, she said, "is the progress against the previously articulated growth initiatives of the bank, the health of the banking pipeline (record levels) and the achievement of operational leverage," including best pay figures.

. Katzke has increased her earnings estimates for this year to US $ 24.70 from US $ 23.25 in 2018 and US $ 25.75 against $ 24.35 in 2019. But after carefully badessing the minimum capital levels, she maintains target of US $ 280 against US close on Tuesday. With [more than] a 20% rise in stock price, a fairly healthy macroeconomic backdrop and evident progress in earnings [first half] we are raising our rating to "Outperform Neutral," she writes. "The risks badociated with achieving our estimates and the target price are related to the health of the economy and the financial markets and Goldman's ability to defend himself."