Commerce Bancshares stock price target lowered to $61 by TD Cowen

Investing.com - TD Cowen reduced its price target on Commerce Bancshares (NASDAQ:CBSH) to $61.00 from $63.00 on Tuesday, while maintaining its Hold rating on the stock. The bank’s shares are currently trading near their 52-week low of $52.11, having declined about 13% year-to-date.

The price target adjustment follows Commerce Bancshares’ third-quarter 2025 results, which showed core earnings per share falling below analyst expectations due to higher loan loss provisions and lower net interest income.

TD Cowen cited "muted topline growth prospects" for the regional bank, pointing to slower balance sheet expansion and pressure on net interest margins as key challenges facing the company.

The investment firm acknowledged Commerce Bancshares’ strong credit quality and conservative approach as "franchise hallmarks," but suggested these strengths were insufficient to overcome the growth limitations.

With Commerce Bancshares shares trading at 12.5 times estimated 2026 earnings, representing a 28% premium compared to peers, TD Cowen concluded there is "limited upside potential" for the stock. According to InvestingPro analysis, the stock appears slightly undervalued at current levels, with additional insights and Fair Value calculations available to subscribers.

In other recent news, Commerce Bancshares reported third-quarter earnings of $1.06 per share, which fell short of analyst expectations of $1.10. The company’s revenue for the quarter was $440.97 million, also missing the consensus estimate of $447.84 million. Following these results, Wells Fargo lowered its price target for Commerce Bancshares to $60.00 from $65.00, citing an "uncharacteristic quarter" with revenue and credit missing expectations. Wells Fargo maintained an Equal Weight rating on the stock. Similarly, Piper Sandler reduced its price target to $63.00 from $70.00, maintaining a Neutral rating. Piper Sandler’s adjustment was influenced by a miss in net interest income and led to a reduction in its 2025 and 2026 operating EPS estimates by 2-3%. These developments highlight recent challenges faced by Commerce Bancshares in meeting financial expectations.

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