Analyst Ratings Coverage
TD Securities (Rank #14) on Thursday November 30th, issued a research report on CIBC’s stock, downgrading the stock’s rating to a “Sell” from a “Hold” rating. STA Research also cut drastically the 12 month target to $8 from $29 per share.
CIBC Stock Analysis
The Canadian Imperial Bank Of Commerce (CIBC) stock forecast, derived from assessments by 14 analysts, indicates an average target price of CAD 61.90 over the next 12 months. The consensus among analysts leans towards a positive outlook, as reflected by the “Buy” rating assigned to CIBC’s stock.
Contrary to this positive sentiment, Stock Target Advisor’s own analysis of Canadian Imperial Bank Of Commerce portrays a slightly bearish perspective. This assessment is based on 5 positive signals and 8 negative signals identified through their analysis. The slightly bearish outlook suggests a mixed bag of indicators, emphasizing caution despite the presence of positive signals.
As of the last closing, Canadian Imperial Bank Of Commerce’s stock price stood at CAD 53.36. While the stock experienced a marginal decline of -0.58% over the past week, it demonstrated positive momentum with a notable +10.82% increase over the past month. However, the stock has faced challenges over the last year, evidenced by a significant -17.64% decrease in its price.
Final Stock Analysis
The average analyst target price and “Buy” rating convey a positive outlook for CIBC’s stock, Stock Target Advisor’s slightly bearish analysis introduces a note of caution. The recent mixed performance, with both positive and negative signals, suggests that investors may want to carefully weigh the potential for future growth against the identified risks when considering Canadian Imperial Bank Of Commerce’s stock.
Fundamental Analysis
Positive Aspects:
- Low Debt: Canadian Imperial Bank Of Commerce (CIBC) exhibits lower leverage compared to its peers, positioning it in the top quartile. This low debt level provides the company with increased flexibility.
- Underpriced Compared to Book Value: The stock is trading at a lower price to book value compared to its peers, placing it in the top quartile. This suggests a potential undervaluation, although careful consideration of the company’s financial performance is recommended.
- Positive Cash Flow: CIBC has demonstrated positive total cash flow in the most recent four quarters, indicating a healthy cash position.
- Superior Capital Utilization: The company’s management has delivered a better return on invested capital in the most recent four quarters compared to its peers, positioning it in the top quartile.
- Superior Total Returns: CIBC has outperformed its sector peers in terms of average annual total returns over the past five years, placing it in the top quartile.
Negative Aspects:
- Poor Return on Assets: The company has delivered a return on assets below the median in the most recent four quarters compared to its peers, indicating a potential inefficiency in asset utilization.
- Overpriced Compared to Earnings: The stock is trading at a higher price to earning ratio compared to its peers and is above the sector median, suggesting a potential overvaluation.
- High Volatility: CIBC’s total returns exhibit volatility, surpassing the median for its sector over the past five years. This may pose risks, requiring investors to assess their risk tolerance.
- Low Market Capitalization: With below median market capitalization, CIBC may face stability challenges in the long run unless it possesses unique technology or market advantages.
- Overpriced on Cash Flow Basis: The stock is trading at a higher price to cash flow ratio compared to its peers, signaling potential overpricing and advising caution for prospective buyers.
- Poor Return on Equity: Return on equity in the most recent four quarters is below the median compared to peers, indicating potential concerns regarding the company’s profitability.
- Low Dividend Growth: CIBC has shown below median dividend growth in the previous five years compared to its sector, potentially affecting its appeal to income-focused investors.
- Low Earnings Growth: The company has demonstrated below median earnings growth in the previous five years compared to its sector, which may impact its attractiveness to investors seeking growth opportunities.
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.
