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Highlights

  • TD Cowen’s Mario C. Mendonca maintains a “Buy” rating on CIBC with a target price of CAD 122.19.

  • The target implies a 9% upside from the current market price of CAD 103.14.

  • CIBC posts double-digit year-over-year growth in Q2 FY25 earnings despite quarterly decline.

TD Cowen has reaffirmed its positive outlook on Canadian Imperial Bank of Commerce (CIBC) (TSX:CM) (NYSE:CM), with analyst Mario C. Mendonca maintaining a “Buy” recommendation and setting a price target of CAD 122.19. The target represents a potential upside of approximately 9% from the bank’s latest closing price of CAD 103.14.

The rating comes on the back of CIBC’s latest quarterly performance, which demonstrated resilience in year-over-year growth despite sequential declines. In its financial results for the second quarter ended April 30, 2025, CIBC reported revenue of CAD 7,022 million, up 14% compared to CAD 6,164 million in Q2 FY24, though down 4% from CAD 7,281 million in Q1 FY25.

Earnings Performance

Reported net income for the quarter reached CAD 2,007 million, a 15% increase from the same period last year but 8% lower than the prior quarter. Adjusted net income rose 17% year-over-year to CAD 2,016 million. Adjusted pre-provision, pre-tax earnings stood at CAD 3,214 million, marking a 19% improvement over the previous year but a 6% drop quarter-over-quarter.

Diluted earnings per share (EPS) came in at CAD 2.04, up from CAD 1.79 in the prior year, while adjusted diluted EPS rose to CAD 2.05, compared to CAD 1.75 a year earlier. Both metrics reflected annual growth of 14% and 17% respectively, but registered declines versus Q1 FY25.

Innovation Recognition

CIBC’s strategic investment in technology has also drawn industry attention. On August 7, 2025, the bank announced that its proprietary generative AI platform, CAI (CIBC AI), was named “Best Gen-AI Initiative” by The Digital Banker. The award recognizes innovative use of generative AI in improving productivity and enhancing the client experience. The accolade marks the second consecutive year CIBC has won the award, following recognition in 2024 for its Knowledge Central Generative AI pilot.

The Digital Banker commended CAI for delivering scalable solutions with measurable impact on global banking operations, underscoring CIBC’s commitment to integrating advanced technology into its service offerings.