Commerce Bancshares Maintains Hold Rating Amid Strong Earnings Beat

Morgan Stanley analyst Manan Gosalia maintains a Hold rating on Commerce Bancshares with a $66.00 price target. The company reported a strong earnings beat driven by better-than-expected net interest income and fees. However, the Hold rating reflects a modest upside potential, stable deposit costs, and positive surprise in loan growth. Credit quality remains stable, with no significant stress indicators, and the company plans to increase share buybacks in the coming quarters.

Morgan Stanley analyst Manan Gosalia has maintained a Hold rating on Commerce Bancshares (NASDAQ: CBSH) with a price target of $66.00, as reported on July 2, 2025. This rating reflects a balanced risk-reward scenario, with several key factors influencing the company's performance [3].

The company reported a strong earnings beat, driven by better-than-expected net interest income and fees, alongside an expansion in net interest margin. This positive financial performance led to an increase in earnings estimates for 2025 and 2026 [2]. However, the Hold rating reflects a modest upside potential, with stable deposit costs and a positive surprise in loan growth contributing to this view. Additionally, credit quality remains stable, with no significant stress indicators, and the company plans to increase its share buybacks in the coming quarters [3].

In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $73.00 price target [3].

Commerce Bancshares, Inc. (NASDAQ: CBSH) reported an EPS of $1.14, beating the estimated $1.02 and marking an earnings surprise of +11.76% for the second quarter of 2025 [2]. The company's revenue for Q2 2025 was $445.76 million, exceeding estimates and showing year-over-year growth. The company's financial health is solid, with a P/E ratio of 15.43 and a debt-to-equity ratio of 0.70, indicating prudent management and a strong market position [2].

References:
[1] https://www.marketbeat.com/all-access/analyst-rankings/535/
[2] https://site.financialmodelingprep.com/market-news/commerce-bancshares-inc-nasdaq-cbsh-surpasses-earnings-revenue-estimates
[3] https://www.tipranks.com/news/ratings/balanced-risk-reward-scenario-justifies-hold-rating-on-commerce-bancshares-ratings