Raymond James Resumes Commerce Bancshares (CBSH) at Market Perform

Raymond James analyst David Feaster Jr. resumes coverage on Commerce Bancshares (NASDAQ: CBSH) with a Market Perform rating.

The analyst comments "We are resuming coverage of Commerce Bancshares (CBSH) with a Market Perform rating. The strength of bank’s franchise is supported by its durable low-cost core deposit base, conservative underwriting with superior credit performance, differentiated fee businesses, and robust capital position. Importantly, we believe the combination of strong earnings generation, modest organic balance sheet growth requirements, moderating asset sensitivity and significant excess capital creates an increasingly attractive capital-return story, with continued share repurchases providing a meaningful lever for EPS growth. Moreover, the continued expansion of its Trust and payments franchises should support attractive risk-adjusted returns while reducing reliance on balance sheet growth near term. That said, CBSH's premium valuation appropriately reflects many of these strengths in our view, leaving the risk-reward balanced. However, for investors looking to play more defense and willing to pay up for quality, we see the bank as providing significant downside protection given the durability of its earnings / profitability profile."

For an analyst ratings summary and ratings history on Commerce Bancshares click here. For more ratings news on Commerce Bancshares click here.

Shares of Commerce Bancshares closed at $58.50 yesterday.

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