UPDATE: BMO Capital Markets Reiterates Outperform Rating, Raises PT on Canadian Imperial Bank of Commerce

In a report published Friday, BMO Capital Markets reiterated its Outperform rating on Canadian Imperial Bank of Commerce CM, and raised its price target from $84.00 to $86.50. BMO Capital noted, “We increased the target price to $86.50 from $84, representing 10.4x our 2013E cash operating EPS of $8.35. We continue to believe that CM shares will trade at a discount given lower net income growth prospects but that concerns on capital reallocation may abate. The target price translates into a target yield of 4.3% on CIBC's current dividend. We do believe that CIBC could increase the dividend 4-5% per year.” Canadian Imperial Bank of Commerce closed on Thursday at $80.87.