Bank of America Securities analyst Brandon Berman reiterated a Hold rating on Commerce Bancshares today and set a price target of $73.00.
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Brandon Berman’s rating is based on a combination of factors that reflect both positive and cautious elements in Commerce Bancshares’ performance. While the company reported a second-quarter earnings per share that surpassed expectations, driven by lower credit costs and higher fees, this was partially offset by increased expenses. Despite this earnings beat, the stock underperformed slightly, which may indicate a more risk-on market sentiment.
Additionally, while Commerce Bancshares is recognized as a high-quality franchise, its shares are currently trading at a premium compared to its mid-cap peers, suggesting that there might be better investment opportunities elsewhere. The bank’s balance sheet trends indicate supportive growth in net interest income, yet uncertainties such as tariffs and competitive pressures in deposit markets remain. Overall, these factors contribute to maintaining a Hold rating, with no change to the price objective of $73.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $66.00 price target.
Based on the recent corporate insider activity of 136 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CBSH in relation to earlier this year.