DexCom earnings beat by $0.03, revenue topped estimates
Investing.com - UBS maintained its Neutral rating and $64.00 price target on Comerica (NYSE:CMA) following the bank’s recent quarterly results. The stock, currently trading at $64.84 with a market capitalization of $8.56 billion, appears slightly overvalued according to InvestingPro’s Fair Value analysis.
The bank delivered strong pre-provision net revenue (PPNR) performance, with expenses coming in below expectations while loan growth showed positive momentum over the past three months. With a P/E ratio of 12.54 and an attractive dividend yield of 4.35%, Comerica has maintained dividend payments for an impressive 55 consecutive years.
Despite these positive factors, UBS noted that Comerica’s outlook indicates a larger increase in second-half expenses than previously anticipated, potentially limiting efficiency improvements during the remainder of the year.
UBS analyst Nicholas Holowko suggested that investor positioning was mixed ahead of the results, making the earnings call particularly important for the stock’s performance.
The firm indicated that market reaction would likely depend on whether investors focus more on the concerning expense outlook or the positive growth momentum Comerica demonstrated during the quarter.
In other recent news, Comerica Inc reported its second-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.42, compared to the forecasted $1.25. The company’s revenue also exceeded projections, coming in at $849 million against the anticipated $843.63 million. Following these results, Comerica’s stock received several price target upgrades from analysts. Keefe, Bruyette & Woods raised its price target to $73, maintaining an Outperform rating, citing Comerica as a "deep-value opportunity" with improved loan growth prospects. Stephens also increased its price target to $68, despite noting mixed earnings results, while maintaining an Equal Weight rating. DA Davidson adjusted its price target to $60, highlighting Comerica’s loan growth rebound, albeit with a Neutral rating. Citi raised its target to $69, noting modest loan growth and expressing concerns about deposit outflows. These developments reflect a cautious optimism among analysts about Comerica’s future performance.
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