As the quarterly earnings cycle starts up, Commerce Bancshares (CBSH)
has established a pretty high mark for other mid-cap banks to beat.
That’s nothing especially new for this well-run Midwestern bank, but the
key issue remains valuation. While Commerce Bancshares has been
operationally excellent for some time, I believe the high valuation has
been a headwind and at least partly explains why the shares have lagged
many regional peers in recent years.
Commerce
Bancshares has an excellent net beta and good management, and is likely
to accumulate a large amount of excess capital in the coming years, but
the combination of weak balance sheet growth and still-high valuation
limits my enthusiasm for buying the shares.
Read more here:
Commerce Bancshares Executing At A Very High Level
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