Rising Interest Rates......Will add short-term negative momentum. Higher rates from very low levels are not necessarily bad for bank earnings overall. But the short-term impact could be if it dampens loan demand and if it negatively affect capital markets activities (stock trading, M&A, etc.) What is negative is that with further rate increases likely, bank yields will need to be higher (probably going to 3.5%+).
CIBC should bottom around $90 and that is a fair price given the overall market climate. I would expect CIBC to be around $100 in 1 year's time. That's based on EPS of $8.00 this year (earnings deceleration in 2nd half) and flat for 2008 (start to grow again in 2009).