The Globe and Mail reports in its Friday edition that RBC Dominion Securities analyst Darko Mihelic has reaffirmed his "sector perform" recommendation for Canadian Imperial Bank of Commerce. The Globe's David Leeder writes that Mr. Mihelic knocked his share target back by $3 to $63. Analysts on average target the shares at $59.45. Mr. Mihelic says CIBC's fourth quarter results showed a "less than expected" reserve build. As a result, he lowered his 2024 and 2025 estimates for CIBC. On Thursday CIBC reported underlying earnings per share of $1.75, exceeding both the analyst's $1.44 estimate and the consensus projection of $1.53. Mr. Mihelic attributed the beat to lower performing provisions for credit losses of $541-million, down 26 per cent quarter-over-quarter but up 24 per cent year-over-year and $224-million below his estimate. Mr. Mihelic says in a note: "CIBC guided to 2024 impaired PCLs in the mid-30 basis points range, the lowest upward revision in PCL guidance among peers that have reported so far. We attribute some of this to CRE losses that are likely to be lower in 2024. CM disclosed a 20 basis points net benefit to its CET 1 ratio next year from the U.S. IRB transition, which we view positively."