Sterne Agee Maintains Neutral on Commerce Bancshares
Sterne Agee reiterates its Neutral rating on Commerce Bancshares (NASDAQ: CBSH) as the company reports 4Q results showing low-cost deposit growth as well as margin pressure.
Sterne Agee says, "Despite a tough margin environment, strong low-cost deposit growth continues to buoy EPS. CBSH posted EPS of $0.69 in 4Q11 (operating was also $0.69), which was above both SALI and consensus 4Q11E EPS of $0.65 and $0.68, respectively. Although we remain guarded in our outlook regarding the margin and loan growth, we still believe that low-cost deposit growth and focused management of overhead will enable CBSH to post solid returns in 2012E."
CBSH closed at $40.14 a share on Tuesday.
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