CIBC’s results pushed its stock higher last Friday. (Photo: 123RF)
What to do with the securities of CIBC, Loblaw and Boralex? Here are some recommendations from analysts likely to move prices soon. Note: the author may have a totally different opinion from that expressed.
CIBC (CM, $62.89): Results that boost share price by 2.71%
In its Q1 2023, CIBC posted earnings per share of $1.95, which helped the stock price appreciate by 2.71% during Friday’s session following the disclosure of results.
Although the profit turned out to be significantly higher than his forecast of $1.65 per share, analyst Doug Young of Desjardins prefers to maintain a cautious approach towards the stock, and therefore maintains his recommendation to keep it, but he slightly raises his target price from $66 to $67.
The analyst reports that the bank’s adjusted earnings before tax and provisions for losses exceeded its forecast by 11%. But what annoys him somewhat is that this deviation above his forecast is mainly attributable to the bank’s activities on the capital markets. These reached $831 million for the quarter while its forecast was $624 million.
Earnings from personal and corporate banking reached $977 million, compared to an analyst forecast of $1.02 billion. Net interest margins were 2.16% compared to the analyst’s expectation of 2.20%. They had been 2.19% in the previous quarter.
On the positive side, the analyst notes that the non-interest expense ratio was 55.1%. The tier one capital ratio came in at 11.6%, slightly above its forecast of 11.5%, and on track to eventually reach 12%.