
CM Stock Forecast & Price Target
CM Analyst Ratings
Bulls say
Canadian Imperial Bank of Commerce (CIBC) demonstrates strong financial performance, with a core lending net interest margin (NIM) at 1.90%, reflecting a sequential increase of 6 basis points, which contributes positively to profitability. The Canadian Commercial Banking and Wealth Management segment reported earnings of $598 million, showing robust growth of approximately 9% quarter-over-quarter and 19% year-over-year, alongside a notable increase in average loans by around 10% year-over-year. Additionally, the Canada Personal and Business Banking segment achieved earnings of $817 million, marking an impressive growth of 11% quarter-over-quarter and 17% year-over-year, surpassing prior estimates and indicating strong underlying demand.
Bears say
The Canadian Imperial Bank of Commerce has experienced a marginal decline in its gross impaired loans ratio, yet this improvement contrasts with a rise in total provisions for credit losses (PCLs) year-over-year, indicating potential stress in the lending portfolio. Despite a decrease in total PCLs on a quarter-over-quarter basis, the overall trend in impaired PCLs highlights vulnerabilities in certain sectors, raising concerns about future loan performance. Additionally, the bank’s adjustment of its medium-term return on equity target downwards, alongside the maintenance of higher capital requirements, suggests a cautious approach that may hinder growth prospects.
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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