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Canadian Bank of Commerce: Buy Rating Affirmed Amidst Stability, Growth Potential, and Strategic Leadership Transition

Canadian Bank of Commerce: Buy Rating Affirmed Amidst Stability, Growth Potential, and Strategic Leadership Transition

Analyst Ebrahim Poonawala of Bank of America Securities reiterated a Buy rating on Canadian Bank of Commerce, with a price target of C$114.00.

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Ebrahim Poonawala has given his Buy rating due to a combination of factors that highlight the Canadian Bank of Commerce’s improved stability and growth potential. Under the leadership of outgoing CEO Victor Dodig, the bank has become more resilient, with a focus on disciplined investments and expense management, which has minimized financial performance volatility. This strategic shift has positioned the bank well for future growth, particularly with its entry into the US commercial banking market.
Looking forward, the transition to new CEO Harry Culham is expected to be smooth, with a focus on retaining top talent and overcoming scale disadvantages in the Canadian market. The bank’s recent financial performance, including a strong 3Q25 core EPS that surpassed expectations, further supports the Buy rating. Additionally, the potential for achieving a return on equity of over 16% and the anticipated margin improvements in both US and Canadian segments contribute to the positive outlook, justifying the raised price objective to $114 CAD.

In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a C$118.00 price target.

CM’s price has also changed moderately for the past six months – from $60.580 to $77.020, which is a 27.14% increase.

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