02:55 PM EDT, 05/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by USD4 to USD42, 8.5x our FY 2025 (Oct.) EPS view (USD4.96 converted from CAD), a warranted discount to peers given softer earnings expectations. We increase our FY 2025 EPS to CAD6.97 from CAD6.88 and raise FY 2025's to CAD6.78 from CAD6.51. CM posted adjusted Apr-Q EPS of CAD1.75 vs. CAD1.70 a year ago, beating the CAD1.64 consensus. Revenue jumped 8% Y/Y driven by margin expansion, higher fee income, and trading revenues. However, this coincided with an equal 8% growth in adjusted noninterest expenses given higher performance-based compensation and growth investments. Strong 9% growth was seen in the Canadian Personal & Business Banking segment as modest loan growth (+2%) was met with an expanding net interest margin (+16 bps to 2.43%). Encouraging signs were seen in the bank's credit quality as gross impaired loans fell 3 bps Q/Q to 0.52%. Still, this remains above historic averages and a weakening Canadian consumer should lead to further credit deterioration in 2H 2024.