Tuesday, January 28, 2020

Commerce Clicks Off Another Quarter, But Value Is Hard To See


I admit that Commerce Bancshares’ (CBSH) valuation is a puzzle to me. I appreciate the virtues of a bank with very strong fee-generating businesses, low asset sensitivity, and strong core operations in a challenging part of the cycle like this, but the market seems to value that to an excessive degree in the case of Commerce. Not that it has hurt performance, though, as these shares have been a standout performer in the space going back as far as 15 years (with respectable outperformance since my last update as well).

I’m still not comfortable with the valuation, and that’s pretty much a deal-breaker for me. But as far as investors who are/were already comfortable with the valuation here, I don’t really see anything in the fourth quarter results that should shift sentiment.

Read the full article here:
Commerce Clicks Off Another Quarter, But Value Is Hard To See

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