CIBC Q4 Earnings Preview: What to Expect

Canadian Imperial Bank of Commerce (CM), Canada’s fifth-largest bank, will report its Q4 financial results on December 2 before the opening bell.

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Stock Performance

Year-to-date, the bank stock has gained more than 30% and is currently trading around C$143. Let’s have a look at what analysts are expecting, as solid earnings could propel CIBC stock higher. (See Analysts’ Top Stocks on TipRanks)

Analyst Estimates

Analysts are expecting CIBC to report adjusted earnings of C$3.53 per share in the fourth quarter of 2021, representing a growth of 26.5% from the prior-year quarter (C$2.79 per share). The estimated revenue is C$5.07 billion, indicating an increase of 10.3% from the fourth quarter of 2020 (C$4.6 billion).

Factors to Watch

Thanks in part to government programs to support the economy, banks have performed well despite COVID-19, and now have cash reserves well above minimum requirements.

Scotiabank analyst Meny Grauman is optimistic about the industry and expects a wave of increases in payments. He said the banks are trading only slightly above the historic multiple, although this is the start of an expansion cycle.

Wall Street’s Take

On November 30, BMO Capital analyst Sohrab Movahedi maintained a Buy rating with a price target of $165. This implies 15.5% upside potential.

The rest of the Street is cautiously optimistic on CM with a Moderate Buy consensus rating based on two Buys and two Holds. The average Canadian Imperial Bank of Commerce price target of C$163.49 implies 14.5% upside potential to current levels.