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Investing.com - Keefe, Bruyette & Woods raised its price target on Comerica (NYSE:CMA) to $73.00 from $69.00 on Monday, while maintaining an Outperform rating on the stock.
KBW cited Comerica as a "deep-value opportunity" for investors, noting the stock trades at just 0.97 times AOCI-adjusted tangible book value per share, making it among the cheapest valuations in the large regional bank sector. This assessment aligns with the bank’s current P/E ratio of 12.54 and P/B ratio of 1.25. With a market capitalization of $8.58 billion and a robust dividend yield of 4.35%, Comerica has maintained dividend payments for 55 consecutive years, as highlighted in InvestingPro’s comprehensive analysis.
The firm’s fundamental outlook for Comerica remains essentially unchanged following second-quarter 2025 results, though KBW expressed encouragement about improved loan growth heading into the second half of 2025.
KBW’s revised model assumes modest improvement in operating efficiency over the next several years, along with potential for strengthening loan growth as interest rates decrease.
The firm also highlighted continued share buybacks as factors that could support both returns and Comerica’s valuation going forward.
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. Revenue also exceeded projections, reaching $849 million against the anticipated $843.63 million. During the earnings call, Comerica’s management discussed the potential for mergers and acquisitions, highlighting ongoing strategic considerations. Analyst firms have responded to these developments with various stock price target adjustments. Stephens raised its price target to $68, maintaining an Equal Weight rating, while DA Davidson increased its target to $60 with a Neutral stance, citing loan growth and future financial projections. Citi also raised its price target to $69, noting modest loan growth and concerns over deposit outflows. Despite these adjustments, Comerica’s net interest income is expected to face challenges in the third quarter due to higher deposit costs, though a rebound is anticipated in the fourth quarter and beyond.
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