Commerce Bancshares: High Stock Price And Negative Earnings Outlook Relative To The First Quarter

Apr. 28, 2021 2:37 AM ETCommerce Bancshares, Inc. (CBSH)
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Sheen Bay Research


  • CBSH is unlikely to report further big reversals of provisions because of exposure to vulnerable loan segments and an increase in loan deferrals.
  • Yields will likely trend downwards while deposit cost will likely remain sticky in the year ahead.
  • The upcoming forgiveness of Paycheck Protection Program loans will likely constrain loan growth.
  • The year-end target price suggests a downside from the current market price. Additionally, CBSH is offering a low and unattractive dividend yield.
Bank loan online banking
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Earnings of Commerce Bancshares, Inc. (NASDAQ: NASDAQ:CBSH) will likely decline downwards in the next three quarters compared to the first quarter of 2021. After a significant reversal of provisions in the first quarter, I'm expecting no further big releases because the loan

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Around 10 years of experience covering Banks and Macroeconomics. Passionate about discovering lucrative investments and generating alpha.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: This article is not financial advice. Investors are expected to consider their investment objectives and constraints before investing in the stock(s) mentioned in the article.

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