CIBC Announces Multi-Year Agreement to Use Microsoft’s Cloud-Based Platform

Canadian Imperial Bank of Commerce (CM) has established a strategic relationship with Microsoft Corp. (MSFT) to use Microsoft Azure as its primary cloud platform. The agreement will accelerate the bank’s digital transformation and cloud-first approach.

The multi-year investment includes CIBC cloud technology, infrastructure, security, and talent training.

Christina Kramer, Senior Executive Vice-President and Group Head, Technology, Infrastructure and Innovation, CIBC, said, “We’re building and investing in leading-edge technology to accelerate our bank’s transformation – our investment in cloud technology is a cornerstone of these efforts. With Microsoft’s Azure platform, we will be better positioned to help clients achieve their ambitions, through client-facing services such as digital banking and global remittances, as well as furthering innovative work in areas such as AI and machine learning.”

Microsoft Azure will support faster, real-time, data-driven decisions to launch and scale innovations in the customer experience.

CIBC said investing in public cloud technology will also help strengthen and expand its essential data protection and security foundations.

Through the CIBC and Microsoft relationship, CIBC will gain access to a full suite of Microsoft training and certification programs, to support and continue to develop CIBC’s top talent. (See Canadian Imperial Bank of Commerce stock charts on TipRanks)

Last month, National Bank analyst Gabriel Dechaine maintained a Buy rating on the stock and raised its price target to C$159.00 (from C$156.00). This implies 13.2% upside potential.

Overall, consensus among Wall Street analysts is that CM is a Strong Buy based on 8 Buys and 1 Hold. The average Canadian Imperial Bank of Commerce price target of C$154.66 implies 10.1% upside potential to current levels.

TipRanks’ Smart Score

CIBC scores a 7 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with the overall market.