CM Stock Forecast & Price Target

Canadian Imperial Bank of Commerce has demonstrated solid financial performance with a core lending net interest margin (NIM) increase of 6 basis points quarter-over-quarter to 1.90%, reflecting ongoing efficiency in its lending operations. The bank's Canada Commercial Banking and Wealth Management segment reported earnings of $598 million, marking a 9% increase quarter-over-quarter and a 19% increase year-over-year, alongside a robust 10% yearly growth in average loans. Additionally, the bank's core EPS estimates have been revised upwards for fiscal years 2025 to 2027, indicating a confident outlook supported by strong pre-provision pre-tax earnings growth and rising earnings in the Personal and Business Banking segment.

The Canadian Imperial Bank of Commerce (CM) has demonstrated a decline in key financial metrics, such as a slight decrease in its gross impaired loans (GIL ratio) to 56 bps in Q3/25, which, while a decrease, remains an indicator of credit quality concerns. The total provision for credit losses (PCLs) of $559 million reflects an 8% quarterly decrease but a 16% year-over-year increase, suggesting ongoing challenges in managing loan defaults despite a reduction in impaired PCLs due to mixed sector trends. Furthermore, CM's adjustment of its medium-term return on equity (ROE) target from 16%+ to 15%+ in light of higher capital requirements conveys a more cautious outlook regarding future profitability and growth.