- Commerce Bancshares posted an in-line core result for the fourth quarter, with ongoing weakness in spread margin partly offset by discipline on costs and signs of improvement in lending.
- Commercial loan demand is picking up, but Commerce lacks the specialty lending operations of faster-growing rivals and is average to slightly below average where leverage to higher rates is concerned.
- Commerce deserves a quality premium, but paying over 18x FY'23 EPS seems like too much of a premium to me.
For further details see:
Valuation Still The Biggest Issue With Commerce Bancshares