RBC Capital Markets raised its price target on CIBC (CM.TO, CM) to $97 from $74.
Analyst Darko Mihelic maintained a Sector Perform rating on shares of the Canadian bank following its quarterly results.
"Q4/24 was stronger than anticipated on lower than expected PCLs," Mihelic said in a note to clients. "We believe CM's guidance on PCLs is credible as is its desire to buyback stock and not overextend itself for mortgage growth."
"We model CM with higher but below average loan growth," the analyst said. "This shows up in slower relative revenue/PPPT/EPS growth in 2026."
"We believe PCLs have likely peaked and even though its ROE target is now lower at 15%, we do not see this level achieved over our forecast period."
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.