Timur Braziler, an analyst from Wells Fargo, maintained the Hold rating on Commerce Bancshares (CBSH – Research Report). The associated price target is $50.00.
Timur Braziler has given his Hold rating due to a combination of factors including Commerce Bancshares’s financial performance and market conditions. Despite Commerce Bancshares’s operating EPS of $0.94 topping estimates, the company is facing challenges with its Net Interest Income (NII). Although its deposit quality remains strong, a shrinking balance sheet means that the bank will not see NII inflection until the second quarter of 2024. Furthermore, Commerce Bancshares’s shares continue to trade at a significant premium compared to its peers, limiting potential valuation expansion in the near term.
In addition, Braziler also takes into consideration the company’s balance sheet trends and capital. The overall asset quality remains healthy with loan growth and improved deposit mix. However, total assets declined by 4.4% quarter over quarter, and by 3.8% year over year. Despite these challenges, Commerce Bancshares remains overcapitalized from a regulatory standpoint. It has resumed a modest buyback in the third quarter, which is expected to accelerate through FY24. Based on these factors, Braziler recommends holding the stock, with an expectation of limited short-term growth.
In another report released on October 10, Jefferies also maintained a Hold rating on the stock with a $52.00 price target.
CBSH’s price has also changed moderately for the past six months – from $54.380 to $46.430, which is a -14.62% drop .
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Commerce Bancshares (CBSH) Company Description:
Commerce Bancshares, Inc. operates as a bank holding company. Its provides electronic banking, deposit accounts, loans and credit lines, and mortgage loans. The company was founded in February 1968 and is headquartered in Nolensville, TN.
Read More on CBSH:
- Commerce Bancshares reports Q3 EPS 96c, consensus 93c
- CBSH Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Commerce Bancshares price target raised to $52 from $51 at Jefferies
- Commerce Bancshares upgraded to Equal Weight from Underweight at Morgan Stanley
- Commerce Financial Advisors joins LPL’s Institution Services Platform
