Commerce Bancshares price target raised to $72 from $69 at Piper Sandler

Piper Sandler raised the firm’s price target on Commerce Bancshares (CBSH) to $72 from $69 and keeps a Neutral rating on the shares. The firm believes the company is well-positioned to continue generating well-above average profitability metrics, particularly as fewer Fed rate cuts this year benefits its net interest income outlook given Commerce’s asset sensitive balance sheet. Piper continues to view Commerce as an attractive holding in a more “risk-off” environment due to its pristine credit profile, enviable revenue diversity, and defensible above average profitability profile. The firm remains on the sidelines as it sees limited catalysts to further expand Commerce’s current premium valuation and given limited visibility of prospects for stronger loan growth and/or deployment of excess capital.