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Investing.com - DA Davidson has raised its price target on Comerica (NYSE:CMA) to $60.00 from $56.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, the stock is currently trading above its Fair Value, with analyst targets ranging from $50 to $75.
The firm cited Comerica’s rebound in average loan growth and positive momentum expected in the second half of 2025, despite management’s projection that net interest income (NII) will come in at the low end of its 5-7% range. The bank has demonstrated resilience with a strong 35.96% return over the past year and maintains an impressive 55-year streak of consecutive dividend payments, currently yielding 4.35%.
DA Davidson noted that Comerica expects NII to decrease slightly in the third quarter before increasing in the fourth quarter of 2025 and throughout 2026. The third-quarter decline reflects additional net interest margin pressure from higher deposit costs and the use of excess cash to redeem preferred stock.
The research firm forecasts that Comerica will not deliver positive operating leverage (POL) in 2025, projecting -3.2% compared to -14.1% in 2024. However, DA Davidson expects the bank to regain positive operating leverage in 2026 at approximately 3%.
While maintaining its Neutral stance on Comerica stock, DA Davidson raised its price target based on these forward-looking financial projections. InvestingPro analysis reveals additional insights about Comerica’s financial health, with multiple ProTips and detailed metrics available in the comprehensive Pro Research Report, helping investors make more informed decisions about this banking stock.
In other recent news, Comerica Inc reported its second-quarter earnings for 2025, exceeding analyst expectations with an earnings per share (EPS) of $1.42, compared to the forecasted $1.25. This represents a 13.6% surprise. Revenue also surpassed projections, coming in at $849 million against the anticipated $843.63 million. The company returned $193 million to shareholders through buybacks and dividends, reflecting its commitment to shareholder value. Citi has raised its price target on Comerica to $69.00 from $61.00, maintaining a Neutral rating. The adjustment follows "modest momentum" in loan growth activity observed in late second quarter. Citi also noted concerns about Comerica’s timeline for Direct Express deposit outflows, which it described as creating "a modest overhang on the valuation multiple." Despite economic uncertainties, Comerica’s CEO Curt Farmer expressed confidence in the company’s growth trajectory, highlighting promising trends in net interest income.
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