CIBC (CM) announced Monday the launch of the CIBC Foundation with the objective to create a more equitable society.
A Foundation to Advance Social And Economic Equity
The CIBC Foundation will aim at making every opportunity more accessible to disadvantaged communities in Canada.
To achieve this goal, the bank made donations totaling C$70 million in fiscal 2021 to launch the foundation, and plans to increase that amount to C$155 million over time.
Since this is a North American initiative, the bank is also announcing its intention to launch the foundation in the United States within the next year.
CIBC president and CEO Victor Dodig said, “The CIBC Foundation is a clear demonstration of our purpose in action, helping to make ambitions real for our clients and our communities. An inclusive economy with opportunity for all lifts our society and benefits everyone.
“The CIBC Foundation exemplifies our bank’s genuinely caring belief that together as a community with shared vision, we can overcome obstacles and emerge more united, resilient, prosperous, and ready for a sustainable future without limits to ambition.”
The CIBC Foundation board of directors will consist of two external members, John Ruffolo, founder and senior partner of Maverix Private Equity, and 2021 Olympic gold medalist Damian Warner.
The CIBC Foundation aims to disburse at least 5% of its total assets each year to charities. This exceeds the 3.5% requirement for charities in Canada. Funding applications will be accepted starting February 2022. (See Analysts’ Top Stocks on TipRanks)
Wall Street’s Take
On September 1, Fundamental Research analyst Siddharth Rajeev downgraded CM to Hold, with a C$148.51 price target. This implies 1.1% downside potential.
Overall, consensus among Wall Street analysts is that CM is a Moderate Buy based on eight Buys and three Holds. The average Canadian Imperial Bank of Commerce price target of C$159.81 implies 6.4% upside potential to current levels.