RBC Capital analysts provided their review on Canadian Imperial Bank of Commerce (NYSE:CM) following its 2022 Investor Day, highlighting the fact that the company has a strategy that does not depend upon “home runs” and is largely driven by organic capital deployment.
The company increased its medium-term core EPS growth target to 7%-10% and core ROE target to over 16%. The company was previously targeting core EPS growth of 5%-10% and core ROE of over 15%. The company believes revenues can grow at a high-single-digit CAGR through 2025, reflecting some outperformance due to the investments it has made over the years.
The analysts expect revenue growth of 6.3% in 2023 and 6.5% in 2024 and expense growth of 4.8% in 2023 and 5.3% in 2024.