01:52 PM EST, 03/01/2024 (MT Newswires) -- CIBC's adjusted diluted EPS of $1.81 was above BMO/consensus estimates of $1.66. The beat to BMO was due to "noteworthy" outperformance in Capital Markets (equity and FX trading).
The bank continues to post strong positive operating leverage reflecting targeted strategic spend, writes analyst Sohrab Movahedi. PCLs of 43bps were in line; U.S. CRE office portfolio reserving likely at a peak. Strong CET1 ratio of 13.0%; CIBC also plans to turn off the DRIP discount by the end of April.
Target raised to $68 based on a 9.4x 2025E EPS multiple. Maintain Outperform.
Price: 65.78, Change: +1.56, Percent Change: +2.43