TD Securities has updated its outlook on Canadian Imperial Bank of Commerce (CM, Financial), with analyst Mario Mendonca increasing the firm's price target for the bank's stock. The new target is set at C$102, up from the previous C$99. The analyst maintains a Buy rating on CIBC, reflecting a positive outlook on the bank's future performance.
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 $71.41 with a high estimate of $74.17 and a low estimate of $68.64. The average target implies an upside of 5.27% from the current price of $67.84. 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 2.2, 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 $54.16, suggesting a downside of 20.16% from the current price of $67.835. 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: May 29, 2025
- Net Income: $2 billion, up 17% from the prior year.
- Earnings Per Share (EPS): $2.05, up 17% from the prior year.
- Pre-Provision Pretax Earnings: Up 19%.
- Return on Equity (ROE): 13.9%, up 50 basis points year-over-year.
- CET1 Ratio: 13.4%.
- Share Repurchases: 6 million common shares during the quarter.
- Revenue Growth: Up 14% driven by strong trading activity, expanding margins, volume growth, and higher fee income.
- Operating Leverage: 430 basis points.
- Provisions for Credit Losses: $605 million, up 18% from a year ago.
- Net Interest Income (NII): Up 16% excluding trading.
- Non-Interest Income: $3.2 billion, up 12% from the prior year.
- Expenses: Grew 6% excluding performance-based compensation.
- Liquidity Coverage Ratio (LCR): 131%.
- US Commercial Banking and Wealth Management Net Income: USD 125 million, up 58% from the prior year.
- Capital Markets Revenue: $1.5 billion, up 32% year-over-year.
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 strong financial results for Q2 2025, with net income of $2 billion and earnings per share of $2.05, both up 17% from the prior year.
- The bank achieved a return on equity of 13.9%, an increase of 50 basis points year-over-year, and maintained a healthy CET1 ratio of 13.4%.
- Canadian Imperial Bank of Commerce (CM) demonstrated broad-based growth across all operating units, with pre-provision pretax earnings up 19% and revenues up 14%.
- The bank's strategic focus on client relationships and digital banking capabilities has resulted in higher Net Promoter Scores and increased client engagement.
- Canadian Imperial Bank of Commerce (CM) continues to invest in technology, including AI, which has saved an estimated 200,000 hours for team members and is expected to enhance operational efficiency.
Negative Points
- Total provisions for credit losses increased by 18% from a year ago, reflecting higher performing provisions due to macroeconomic uncertainties.
- The bank's US segment experienced a decline in net interest margin by 6 basis points from the prior quarter, driven by normalization of loan margins.
- Transaction-related fees were down 15%, mainly due to the revenue-neutral impact of benchmark reform and lower card and FX fees.
- Expenses grew by 6%, driven by investments in strategic initiatives and higher compensation costs, which could pressure future profitability if not managed effectively.
- The bank faces ongoing challenges from trade policy uncertainties and macroeconomic volatility, which could impact future growth and financial performance.
