Canadian Imperial Bank of Commerce (CM), Canada’s fifth-largest bank, will report its Q3 financial results on August 26, before the opening bell.
Over the past year, the bank stock has gained more than 50%, and is currently trading at around C$150 per share. (See CM stock charts on TipRanks)
Let’s have a look at what analysts are expecting, as solid earnings could propel CIBC stock higher.
Analysts are expecting CIBC to report adjusted earnings of C$3.42 per share in the third quarter of 2021, representing a growth of 26.2% from the prior-year quarter (C$2.71 per share). The estimated revenue is C$4.92 billion, indicating an increase of 4.5% from the third quarter of 2020 (C$4.71 billion).
CIBC beat EPS estimates in the past two quarters, and is likely to beat estimates again in the third quarter. Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Royal Bank of Canada (RY), and National Bank of Canada (NA), which have already reported their earnings, all beat profit estimates.
Canadian banks have recovered some of the record amounts they set aside last year to cover bad loans.
A few days ago, Scotiabank analyst Meny Grauman maintained a Buy rating on CM, and raised its price target to $166 (from $157). This implies 8.2% upside potential.
The rest of the Street is bullish on CM, with a Strong Buy consensus rating, based on seven Buys and one Hold. The average Canadian Imperial Bank of Commerce price target of C$154.62 implies 2.2% upside potential to current levels.
TipRanks’ Smart Score
CM scores a 6 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with the overall market.
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Royal Bank Q3 Profit Beats Expectations
Scotiabank Q3 Profit Beats Expectations
BMO Q3 Profit Crushes Estimates; Shares Up 2%
