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Canadian Imperial Bank of Commerce
CM.NISIN: CA1360691010SEDOL: 2418872 |
Rating: BUY |
Target Price: 60.00 USD |
Investment Horizon: 6 to 24 months |
2Q 09 News Alert
Canadian Imperial Bank of Commerce (CIBC) reported a moderate y-o-y decline in Net Interest Income (NII) during 2Q 09. Meanwhile, a sharp rise in non-interest income was offset by higher provisions for credit losses and, although net losses narrowed y-o-y, the bottom-line still fell short of our estimate. Considering these weaker-than-expected results, as well as the weak macroeconomic environment and its likely impact on credit…
1Q 09 Update Report
According to the IMF's April 2009 World Economic Outlook report, Canadian GDP will contract by 2.5% in 2009. Considering this weak domestic economic outlook, as well as an adverse outlook for exports (the US, which has been hard hit by the downturn, is Canada's main export market), we expect demand for credit to fall throughout FY 2009, weighing negatively on NII. However, this should be partly offset by the Bank of Canada's efforts to stimulate the credit market…
Company News Alert
On 05 March 2009, Canadian Imperial Bank of Commerce (CIBC) announced that it will issue C$1.6 bn in new tier-1 notes in an effort to strengthen its balance sheet. However, our fundamental outlook remains unchanged. Therefore, although the target price derived in our last update report does not support a HOLD, we maintain our HOLD…
Company News Alert
The Canadian Imperial Bank of Commerce (CIBC) common stock price has declined significantly since our previous update report, reflecting investor concerns over the bank’s weak 1Q 09 results and prospects that it will incur higher provisions for credit losses, going forward, due to falling property prices. Meanwhile, we remain concerned about the impact of the downturn in the Canadian economy on credit growth. In view of this, we expect to cut our estimates and target…
1Q 09 News Alert
Canadian Imperial Bank of Commerce (CIBC) reported robust growth in Net Interest Income (NII) in 1Q 09, reflecting a recovery from huge charges incurred in 4Q 07. In addition, its net income available to common share holders benefited from lower y-o-y trading losses during the quarter. However, provisions for credit losses soared during the period in light of deteriorating macro economic conditions and declining property prices. In view of this, as well as the…
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