Stock price when the opinion was issued
CM is taking less on credit provisions than other banks. Positive: credit situation better than others. Negative: taking more risk and, if wrong, stock would be penalized. CM is Canada-centric. Exposed to residential mortgages and commercial real estate in Canada; two iffy sectors, but doing better than expected. Good earnings and good asset management.
Don't sell CM. Trades more cheaply than RY. RY commands a premium price for a premium asset.
Value scores 8/10, fundamentals 8/10. King of capital, resilience, and diversified lending. Steady, consistent beats compared to the other Canadian banks. Strong Q1, shrugging off a lot of the rate cut noise. Still sees upside in wealth management and US expansion. Rock-solid balance sheet that can weather any storm.
Slowing mortgage growth, which could continue if Canadian housing slows and tariffs ramp up. Core hold for her on reliability and growth.