
CM Stock Forecast & Price Target
CM Analyst Ratings
Bulls say
Canadian Imperial Bank of Commerce (CIBC) demonstrated strong performance with a notable increase in core lending net interest margin (NIM), which rose by 6 basis points quarter-over-quarter to 1.90%, indicating effective management of interest income. The Canada Commercial Banking and Wealth Management segment experienced robust earnings growth of approximately 9% quarter-over-quarter and 19% year-over-year, supported by a 10% growth in average loans compared to the same period last year. Additionally, the upward revisions in core earnings per share estimates for FY25 to FY27 reflect a positive trajectory, bolstered by CIBC's share repurchase strategy and continual loan growth across its segments.
Bears say
The Canadian Imperial Bank of Commerce reported a decline in gross impaired loans as a percentage of total gross loans, indicating a marginal improvement; however, the overall figures remain concerning with provisions for credit losses (PCLs) showing an increase year-over-year despite a quarter-over-quarter decrease. The bank's total PCLs of CAD 559 million fell short of estimates and were significantly influenced by varying performance in different sectors, raising flags about the stability of its loan portfolio. Furthermore, the reduction in the medium-term return on equity (ROE) target from 16% to 15%+ and the reliance on higher capital buffers to meet regulatory requirements suggest underlying vulnerabilities that could impact future profitability amidst ongoing economic risks.
This aggregate rating is based on analysts' research of Canadian Imperial Bank of Commerce and is not a guaranteed prediction by Public.com or investment advice.
CM Analyst Forecast & Price Prediction
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