Group 1 - The target price for Eli Lilly & Co. has been raised from $900 to $920 by the Bank of Montreal [1]

Group 1: Company Performance - Bank of Montreal (BMO) has returned 17.8% year-to-date, outperforming the Finance sector average of 9.2% [4] - The Zacks Consensus Estimate for BMO's full-year earnings has increased by 2.4% over the past quarter, indicating improved analyst sentiment [3] - BMO currently holds a Zacks Rank of 2 (Buy), suggesting a positive outlook for the stock [3] Group 2: Industry Context - Bank of Montreal is part of the Banks - Foreign industry, which consists of 67 stocks and has an average year-to-date return of 26.8%, indicating that BMO is slightly underperforming its industry [6] - Banco Bradesco, another stock in the Finance sector, has significantly outperformed with a year-to-date return of 50.8% and also holds a Zacks Rank of 2 (Buy) [4][5]

Core Viewpoint - The Bank of Montreal's chief economist Doug Porter asserts that there is no justification for the Bank of Canada to lower interest rates in July due to persistent core inflation despite economic growth being below potential [1] Economic Indicators - The core Consumer Price Index (CPI) in Canada remained at 3% in June, which is at the upper limit of the Bank of Canada's inflation target range [1] - The increase in housing costs is contributing to upward pressure on core inflation [1] Price Changes - The retaliatory tariffs on U.S. imports are partially responsible for the high core inflation [1] - In June, the price of durable goods accelerated to a 2.7% increase from 2% in May [1] - The automotive prices rose by 4.1%, furniture prices increased by 3.3%, and clothing and footwear prices went up by 2% [1]

Core Viewpoint - The Montreal Bank's capital markets U.S. interest rate strategy head, Ian Lyngen, believes it is difficult to imagine that the recent CPI report will lead the Federal Reserve to lower interest rates before September due to the current tariff environment [1] Group 1 - The U.S. Treasury market showed a lackluster performance following the CPI report, indicating that the report may not spark discussions about a potential rate cut by the Federal Reserve [1] - The upcoming implementation of a new round of tariffs on August 1 is expected to lead the Federal Reserve to maintain its current stance temporarily [1] - Investors are closely monitoring speeches from Federal Reserve officials for any hints regarding recent policy directions, although the likelihood of such guidance appearing is currently low [1]

Group 1 - Bank of Montreal (BMO) was identified as the highest conviction bank stock pick in 2023, showing significant promise among Canadian banks with a stock return of 45% [1] - The investor, Shri Upadhyaya, emphasizes the importance of independent research and personal investment experience, which shapes his investment philosophy [1] - The investment strategy includes focusing on under-the-radar small caps with asymmetric upside, low-beta stocks with growth potential, and avoiding poor risk-reward setups [1] Group 2 - The approach also involves pairing long ideas with targeted shorts, viewing this as a value investing strategy on the short side, which can help manage volatility and improve long-term compound annual growth rate (CAGR) [1]

Core Viewpoint - The Canadian economy appears to have stabilized, with expectations that the central bank will maintain its policy interest rate this month [1] Employment Data - The employment report for June showed a significant increase of over 90,000 jobs in the primary working age group (25-54 years) [1] - This monthly employment growth is the strongest recorded for this demographic when excluding data from the COVID-19 pandemic [1] - Average weekly hours worked increased by 0.5% in June, translating to an annualized growth rate of approximately 1.3% for the second quarter [1] Economic Uncertainty - Despite the positive employment data, there are concerns regarding potential flaws and ambiguities in the report, leading to a cautious outlook on the economic situation [1] - The current economic uncertainties have prompted skepticism about the robustness of the reported figures [1]

Core Viewpoint - The ongoing trade negotiations between the U.S. and Canada are likely to result in persistent tariffs on Canadian imports, as indicated by recent communications from President Trump to Canadian Prime Minister Carney [1] Group 1: Trade Relations - Robert Kavcic, an economist at the Bank of Montreal, suggests that regardless of the outcomes of discussions between Trump and Carney, tariffs on Canadian goods will continue [1] - Trump warned that Canadian imports not complying with the USMCA regulations could face tariffs as high as 35% [1] - The possibility of tariffs targeting specific industries remains, indicating a prolonged period of trade tension [1] Group 2: Cooperation on Fentanyl - Trump mentioned that he might consider adjusting tariff levels if Canada cooperates more with Washington in curbing fentanyl smuggling [1] - This suggests that trade negotiations may be influenced by broader issues such as drug trafficking, which could affect tariff decisions [1] Group 3: Economic Implications - Kavcic noted that the likelihood of avoiding some form of enduring tariffs appears increasingly unlikely [1]

Core Insights - The article discusses the importance of accurate information in the financial sector and the challenges faced by journalists in reporting on economic matters [4]. Group 1 - The author emphasizes the need for reliable data in financial reporting to ensure informed decision-making [4]. - The article highlights the author's extensive experience in covering financial news and the complexities involved in understanding economic indicators [3][4]. - It notes that the financial sector has unique challenges, including the rapid pace of information dissemination and the potential for misinformation [4].

Core Viewpoint - BMO Financial Group is acquiring Burgundy Asset Management Ltd. to enhance its wealth management capabilities, particularly for high-net-worth and ultra-high-net-worth clients, with the transaction expected to close by the end of 2025 [1][2][3]. Company Overview - BMO Financial Group is the seventh largest bank in North America, with total assets of $1.4 trillion as of April 30, 2025, and has a long history of providing a wide range of financial services [13]. - Burgundy Asset Management, founded in 1990, is a respected independent investment manager with approximately $27 billion in assets under management as of May 31, 2025, serving high-net-worth individuals and institutions [12]. Transaction Details - The acquisition price for Burgundy is approximately $625 million, to be paid in BMO common shares, including a $125 million holdback contingent on asset retention [3]. - An earn-out component may be included based on the achievement of specific growth targets post-acquisition [3]. Strategic Implications - The acquisition is expected to strengthen BMO's position in the Canadian Investment Counsel space and enhance its offerings for high-net-worth clients, building on its recognition as Canada's Best Private Bank for Ultra-High-Net-Worth clients [2][4]. - Burgundy will continue to operate under its brand within BMO Wealth Management, with its current leadership remaining in place [4][5].

Core Viewpoint - Auxly Cannabis Group Inc. has entered into two significant agreements aimed at strengthening its balance sheet, reducing debt, and supporting long-term growth [1][2] Group 1: Financial Transactions - The company has amended its credit facility, which will enhance liquidity and provide flexibility for capital allocation towards strategic growth initiatives [1][3] - The settlement of the Imperial Brands convertible debenture through equity issuance will eliminate over $21 million of debt from the balance sheet, improving capital structure and reducing interest obligations [1][2][5] Group 2: Credit Facility Details - The amended credit facility will consist of a total of $50.7 million, including a term loan of $36.2 million and a revolving facility of $10 million for working capital [6] - The term of the facility is two years with an option to extend for an additional year, and it will be secured by substantially all assets of the company and its subsidiaries [6] Group 3: Imperial Brands Settlement - The exchange agreement with Imperial Brands will convert approximately $1 million principal and $1.39 million of accrued interest into shares, resulting in Imperial owning approximately 19.9% of the company post-settlement [8][15] - The total consideration for the shares and warrants issued to Imperial Brands is approximately $9.8 million, reflecting the settlement of the indebtedness owed under the debenture [15]