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 (NYSE: 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.
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