Analyst Ratings Coverage
Morningstar maintains a positive outlook on Canadian Imperial Bank of Commerce (CIBC) with a “Buy” recommendation and a price target of CAD 65.
RBC (Royal Bank of Canada) adopts a neutral stance, suggesting “Sector Perform,” but revises the target price down to CAD 63. Scotia Capital also maintains a “Sector Perform” rating for CIBC with a price target of CAD 57.
BMO Capital Markets expresses optimism, giving an “Outperform” rating and an increased target price of CAD 67. Desjardins Securities, on the other hand, recommends a more conservative approach with a “Hold” recommendation and a lowered target price of CAD 55.
Scotia Capital maintains a “Sector Perform” rating for Canadian Imperial Bank of Commerce (CIBC) with a target price of CAD 57.
RBC also upholds a “Sector Perform” stance for CIBC but has revised the target price down to CAD 63.
CIBC Stock Analysis
The Canadian Imperial Bank Of Commerce (CIBC) is currently under the scrutiny of 14 analysts, whose collective forecast indicates an average target price of CAD 61.58 over the next 12 months. This consensus aligns with an overall “Buy” rating among analysts, suggesting a positive sentiment regarding the future performance of CIBC’s stock.
Despite this general optimism, Stock Target Advisor’s independent analysis paints a slightly bearish picture. Their assessment takes into account 5 positive signals but is counterbalanced by 8 negative signals, indicating a level of caution or uncertainty about the stock’s trajectory.
Examining the recent performance, as of the last closing, the stock was valued at CAD 56.10. Noteworthy is the positive trend observed in the short term, with a gain of +4.57% over the past week and a substantial increase of +15.01% over the past month. However, over a more extended period, the stock has experienced a decline of -13.41% over the last year, signaling some challenges and market fluctuations during that timeframe.
CIBC Fundamental Analysis
Positive Aspects:
- Low Debt: The company exhibits low leverage compared to its peers, positioning it in the top quartile. This suggests greater financial flexibility, though caution is advised to ensure that the low debt is not due to a lack of growth potential.
- Underpriced Compared to Book Value: The stock is trading at a lower valuation in terms of price to book value compared to its peers, placing it in the top quartile. However, further examination of the company’s financial performance is recommended to identify any specific reasons for this underpricing.
- Positive Cash Flow: The company has demonstrated positive total cash flow over the most recent four quarters, indicating a healthy financial position.
- Superior Capital Utilization: Management has delivered a better return on invested capital in the most recent four quarters compared to its peers, positioning the company in the top quartile.
- Superior Total Returns: The stock has outperformed its sector peers in terms of average annual total returns over the past five years, placing it in the top quartile for a hold period of at least 12 months.
Negative Aspects:
- Poor Return on Assets: The company has delivered a return on assets below the median compared to its peers in the most recent four quarters.
- Overpriced Compared to Earnings: The stock is trading at a higher valuation in terms of price to earnings compared to its peers and is above the sector median.
- High Volatility: Total returns for the company are volatile and above the median for its sector over the past five years. Investors are advised to assess their risk tolerance before investing in such a stock.
- Low Market Capitalization: The company has a below-median market capitalization within its sector, potentially making it less stable in the long run unless it possesses unique technology or market positioning.
- Overpriced on Cash Flow Basis: The stock is trading at a higher valuation in terms of price to cash flow compared to its peers, being priced above the median for its sector. Caution is recommended for potential buyers.
- Poor Return on Equity: The company’s return on equity has been below the median compared to its peers in the most recent four quarters.
- Low Dividend Growth: The stock has demonstrated below-median dividend growth in the previous five years compared to its sector.
- Low Earnings Growth: The company has shown below-median earnings growth in the previous five years compared to its sector.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
