
Commerce Bancshares (CBSH) Stock Forecast & Price Target
Commerce Bancshares (CBSH) Analyst Ratings
Bulls say
Commerce Bancshares Inc. has demonstrated strong financial performance with tangible book value (TBV) increasing by 3% quarter-over-quarter to $27.41 and a notable growth in tangible common equity (TCE) by 41 basis points to 11.3%, alongside top decile profitability metrics of 1.78% ROA and 15.9% ROTCE. The bank has shown a positive trajectory in loan growth with a 3% increase in end-of-period (EOP) loans, driven by a robust pipeline in commercial and industrial lending, and it anticipates future growth in loans and deposits, aiming for increases of 4.4% and 2.6%, respectively. Additionally, with enhanced revenue expectations from its wealth management division and corporate card services, Commerce Bancshares has raised its operating EPS projections for 2025 and 2026 by 4% to 5%, indicating a solid outlook for continued financial improvement.
Bears say
Commerce Bancshares Inc has experienced a notable underperformance, lagging behind the KRE by 12% year-to-date, resulting in a valuation decline that positions its shares among the cheapest in relative and absolute terms over the past five years. The bank reported a shortfall in pre-provision net revenue (PPNR) primarily due to a softer net interest income (NII) stemming from stagnant balance sheet growth and increased net interest margin (NIM) pressure, with NIM declining by 6 basis points to 3.64%. Furthermore, downward revisions to operating earnings per share estimates for 2025 and 2026 by 2-3% reflect ongoing concerns regarding reduced NII and NIM outlooks, compounded by a weakened commercial real estate (CRE) pipeline and heightened competition in pricing.
This aggregate rating is based on analysts' research of Commerce Bancshares and is not a guaranteed prediction by Public.com or investment advice.
Commerce Bancshares (CBSH) Analyst Forecast & Price Prediction
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