BMO Capital analyst Sohrab Movahedi has maintained their bullish stance on CM stock, giving a Buy rating yesterday.
Sohrab Movahedi has given his Buy rating due to a combination of factors including the Canadian Bank of Commerce’s strong financial performance and strategic positioning. The bank reported an impressive earnings per share that exceeded both the analyst’s and consensus expectations, driven by record trading revenues in its Capital Markets segment and robust performances across other divisions such as Canadian Commercial & Wealth and U.S. Commercial & Wealth.
Moreover, the bank’s pre-tax pre-provision profit showed significant year-over-year growth, supported by improved revenue and operating leverage. The bank’s strong capital position, reflected in its CET1 ratio, supports continued share buybacks, which is a positive signal for investors. Additionally, the bank’s focus on affluent customer acquisition and consistent execution of its Canadian-centric strategy are expected to sustain its momentum and improve its valuation metrics through 2025-26.
Movahedi covers the Financial sector, focusing on stocks such as Royal Bank Of Canada, Toronto Dominion Bank, and Bank Of Nova Scotia. According to TipRanks, Movahedi has an average return of 8.3% and a 55.56% success rate on recommended stocks.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a C$108.00 price target.