) estimates are increased. Jefferies reported that it is increasing its EPS estimates due to a slightly higher pre-provision run rate (largely due to a lower expense base) and better credit quality. Commerce continues to display solid fundamentals, but shares trade at fair value. “Our price target of $43 applies a 15.5x multiple to our 2011 earnings estimate of $2.75. The forward multiple is slightly above the historical average of 14x (2001-2007) to account for less-than-normal earnings in 2011 and significant excess capital. Risks include the pace of economic recovery and loan growth outlook.” Commerce Bancshares closed yesterday at $40.68