Analyst Bank Updates
Today, several analysts updated their coverage on Canadian banks, after reporting their quarterly earnings, reflecting the ongoing analysis in the sector and adjusting their outlooks based on recent performance, broader economic trends, and forward expectations.
These updates provide insights into how analysts are positioning themselves regarding individual banks and the broader banking landscape.
Canadian Imperial Bank of Commerce (CM:CA) (CM)
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TD Securities (Buy): TD Securities has a Buy rating on CIBC with a target price of CAD 99. This is based on the bank’s strong performance potential despite broader market conditions, and the forecast continues through February 28, 2025.
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Morningstar (Underperform): Morningstar maintains an Underperform rating for CIBC with a target price of CAD 77. This reflects a more cautious view, as Morningstar anticipates challenges in the bank’s performance in the near term, likely due to macroeconomic factors.
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RBC Capital Markets (Target Up): RBC has increased its target for CIBC, now setting a price target of CAD 108. This indicates a positive outlook for the bank, expecting growth and a potential rebound driven by strategic adjustments and favorable conditions in the financial market.
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BMO Capital Markets (Outperform): BMO has a target price of CAD 98 on CIBC and rates it Outperform, suggesting confidence in the bank’s ability to exceed market expectations in the long term.
Royal Bank of Canada (RY:CA) (RY)
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BMO Capital Markets (Outperform): BMO maintains an Outperform rating on RBC with a price target of CAD 190. This reflects strong confidence in RBC’s growth prospects, citing its leading position in the Canadian banking sector and solid performance in key areas.
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Cormark Securities (Target Down): Cormark has lowered its target for RBC to CAD 189, down from previous expectations. This reduction likely reflects concerns over current economic conditions and potential slowdowns in the banking sector.
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TD Securities (Hold): TD Securities has a Hold rating on RBC, with a target price of CAD 178. This indicates a more neutral stance, suggesting that RBC’s stock is fairly valued at its current level, with no major catalysts expected in the near term.
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Morningstar (Hold): Morningstar also maintains a Hold rating for RBC, setting a target price of CAD 157. The firm remains cautious on the stock, advising investors to watch for any potential market changes or shifts in the bank’s fundamentals.
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CIBC World Markets (Neutral): CIBC has a Neutral rating on RBC with a target price of CAD 175. This position is based on a balanced view of RBC’s current strengths and challenges, with a suggestion that the bank’s performance may align with overall market trends, but there are risks to consider.
Toronto Dominion Bank (TD:CA) (TD)
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STA Research (Underperform): STA Research maintains an Underperform rating for TD, with a target price of CAD 70. This reflects a bearish view on the bank’s near-term performance, possibly due to expected pressures in its revenue growth or exposure to riskier assets.
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CIBC World Markets (Outperform): CIBC rates TD Outperform, with a target price of CAD 96. This positive outlook suggests that TD’s strong operational performance and positioning in the market will help it surpass general market trends, delivering solid returns.
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Morningstar (Hold): Morningstar has a Hold rating on TD, setting its target price at CAD 92. This neutral outlook is based on a mixed view of TD’s market conditions, where growth opportunities may exist, but there are no immediate catalysts to drive major outperformance.
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BMO Capital Markets (Outperform): BMO also has an Outperform rating for TD with a price target of CAD 95, indicating a favorable outlook based on its performance metrics and potential for growth over the next few quarters.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
