Scotiabank has initiated coverage on Canadian Imperial Bank of Commerce (CM, Financial), assigning an Outperform rating. The financial institution has set a target price of C$98 for the bank's stock. This move reflects Scotiabank's confidence in CIBC's potential for strong market performance and growth.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Canadian Imperial Bank of Commerce (CM, Financial) is $67.76 with a high estimate of $67.99 and a low estimate of $67.52. The average target implies an upside of 3.46% from the current price of $65.49. More detailed estimate data can be found on the Canadian Imperial Bank of Commerce (CM) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Canadian Imperial Bank of Commerce's (CM, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Canadian Imperial Bank of Commerce (CM, Financial) in one year is $53.71, suggesting a downside of 17.99% from the current price of $65.49. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Canadian Imperial Bank of Commerce (CM) Summary page.
CM Key Business Developments
Release Date: February 27, 2025
- Revenue: $7.3 billion, up 17% from the prior year.
- Adjusted Earnings Per Share (EPS): $2.20, up 22% from the prior year.
- Adjusted Return on Equity (ROE): 15.3%.
- Common Equity Tier 1 (CET1) Ratio: 13.5%, up from 13.3% last quarter.
- Non-Trading Margins: Up 17 basis points from the prior year.
- Non-Trading Fee Income: Up 11% from the prior year.
- Operating Leverage: Positive for the sixth consecutive quarter.
- Adjusted Net Income: $2.2 billion, up 23% from the prior year.
- Pre-Provision Pretax Earnings: Up 19% from the prior year.
- Net Interest Income (NII) Excluding Trading: Up 19% from the prior year.
- Noninterest Income: $3.5 billion, up 17% from the prior year.
- Expenses: Grew 9% from the prior year.
- Liquidity Coverage Ratio (LCR): 132%.
- Canadian Commercial Banking Loans and Deposits: Up 8% and 10%, respectively.
- US Commercial Banking and Wealth Management Net Income: USD 180 million, up $131 million from the prior year.
- Capital Markets Revenue: $1.6 billion, up 25% from the prior year.
- Total Provision for Credit Losses: $573 million, up from $419 million last quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Canadian Imperial Bank of Commerce (CM, Financial) reported record revenues of $7.3 billion, up 17% from the prior year, with strong performance across all business units.
- Adjusted earnings per share reached a record high of $2.20, marking a 22% increase from the previous year.
- The bank's CET1 ratio improved to 13.5%, reflecting strong capital management and share repurchase activities.
- Canadian Personal and Business Banking showed significant growth, with mass affluent clients growing 4.5 times faster than the rest of the client base.
- North American Wealth Management achieved strong results, ranking number one in long-term mutual fund net sales in Canada for the quarter.
Negative Points
- Trade tensions between Canada and the United States create uncertainty, potentially impacting sectors like forestry, auto parts, aluminum, steel, and agriculture.
- Expense growth was elevated, partly due to performance-based compensation and foreign exchange translation, impacting operating leverage.
- The bank increased its performing credit provisions, reflecting growing risks in the macroeconomic outlook.
- Gross impaired loans increased, particularly in Canadian residential mortgages and US commercial portfolios, though strong collateral mitigates potential losses.
- The bank faces ongoing uncertainty regarding potential tariffs, which could affect client activity and economic conditions.
