CIBC initiated with a Buy at Jefferies

Jefferies analyst John Aiken initiated coverage of CIBC with a Buy rating and C$73 price target. The firm says it is initiating coverage on the Canadian banks at “an inauspicious time,” given the concerns that a potential recession could have on earnings and valuation. However, the “banks are in good stead,” and once the Canadian banks weather the expected economic slowdown, their prospects are “quite solid,” says the firm, which is not anticipating any lasting pain from a potential shallow recession.