CBSH Normalized Earnings To Be Better Than Peers
Analyst Erika Penala of UBS upgrades Commerce Bancshares (NASDAQ: CBSH) from "neutral" to "buy." The target price for CBSH is set to $42.
According to UBS, the recent underperformance of Commerce Bancshares’ stock creates an attractive buying opportunity. “CBSH is poised to be among the clear winners this cycle, given superior credit quality, stronger-than-peer post-cycle EPS recovery, and excess capital positioning (without TARP),” the analyst says.
“While the average regional bank will likely not reach “normalized” earnings until 2014, CBSH appears positioned to exceed pre-cycle EPS power by 2011… Better lending revenue momentum, a more diversified fee income stream, and aggressive buyback activity drive our outlook,” the analyst adds.
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