New CIBC Costco MasterCard to Offer More Cash Back

Canadian Imperial Bank of Commerce (CM) provided product information and timeline updates for the new CIBC Costco Mastercard (MA) on Thursday.

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This follows the announcement earlier this year that CIBC will become the exclusive issuer of credit cards Costco in Canada. (See Analysts’ Top Stocks on TipRanks)

Valuable Benefits Built from Costco Member Feedback

Launched in March 2022, the card will bring exciting new features and benefits to members, including more cash back rewards, new insurance coverage and flexible payment plans. Costco member feedback is reflected in many of the new benefits.

Costco members who wish to apply for the new CIBC Costco Mastercard will be able to do so directly through Costco warehouses, or on Costco or CIBC’s websites starting March 2022.

Management Commentary

“Our top priority is to provide an innovative credit card offering that expands the value that Costco members receive, many of whom are new to our bank. We are looking forward to welcoming these members to CIBC with a card that offers richer rewards, such as enhanced cash back features, novel insurance coverage and the flexibility of paying for large purchases at Costco at special lower rates,” said Diane Ferri, SVP, Card Products at CIBC.

Wall Street’s Take

On November 23, Scotiabank analyst Meny Grauman maintained a Hold rating on CM with a C$168 price target. This implies 12.5% upside potential.

Overall, consensus among Wall Street analysts is that CM is a Moderate Buy based on seven Buys and four Holds. The average Canadian Imperial Bank of Commerce price target of C$160.19 implies 7.3% upside potential to current levels.