BofA starts Commerce Bancshares with a Neutral on ‘rich’ valuation

As previously reported, BofA initiated coverage of Commerce Bancshares with a Neutral rating and $55 price target. The firm views Commerce as “well positioned to navigate risks” with its minimal interest rate exposure, revenue diversity and historically lower-through-the-cycle losses, but thinks the valuation is “quite rich” compared to regional bank peers and sees better risk/reward elsewhere, the analyst tells investors.