Investment Thesis
Canadian Imperial Bank of Commerce (CM) [TSX:CM] delivered modest top and bottom line revenue growth in Q2 F2019. Looking forward, we continue to believe it will be a challenge for CIBC to maintain its top and bottom line growth due to elevated Canadian household debts that will limit its loan growth and elevated operating expenses for the rest of the year. CIBC’s shares are currently slightly undervalued when compared to its historical average and to the average of its peers. It also pays an attractive and growing dividend with a dividend yield of