The Globe and Mail reports in its Tuesday, Jan. 6, edition that RBC Dominion Securities analyst Darko Mihelic has a positive outlook for Canadian banks in 2026. The Globe's David Leeder writes that Mr. Mihelic believes there is potential for increased earnings and improved valuations for the sector in a healthier economic environment. As trade negotiations reach a conclusion, this could lead to higher loan growth, normalization in credit conditions, and ongoing strength in capital markets and wealth management. Mr. Mihelic says in a note: "We believe mortgage renewal shock will be modest and therefore supportive to bank NIMs as renewal rates will likely hover in the 90-per-cent range for the group. We believe mortgage payment shock risks have somewhat subsided. ... We believe an improved economic environment will also benefit the lifecos as strong equity markets performance typically leads to assets under management growth." Mr. Mihelic rates Canadian Imperial Bank of Commerce "outperform." He gave his share target a $3 boost to $134. Analysts on average target the shares at $127.23. The Globe reported on Dec. 9 that Mr. Mihelic had reiterated his "outperform" call for CIBC, which was then worth $125.40.