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Investing.com - Evercore ISI upgraded Comerica (NYSE:CMA) from Underperform to In Line and raised its price target to $88.00 from $70.00 on Wednesday. The new target aligns more closely with InvestingPro’s Fair Value assessment, which suggests the stock is currently fairly valued with a P/E ratio of 14.85.
The upgrade follows the October 6 announcement that Fifth Third Bancorp will acquire Comerica, a development that significantly changes the outlook for the Dallas-based bank. Comerica shares have surged 46.09% over the past six months, reflecting investor optimism about the acquisition.
Evercore ISI’s previous Underperform rating had been based on concerns about Comerica’s challenged revenue growth and limited flexibility to reduce expenses, which the firm believed could negatively impact the bank’s returns and valuation. Despite these concerns, InvestingPro data shows Comerica has maintained dividend payments for 55 consecutive years, currently offering a 3.7% yield.
The research firm noted that these pressures, along with influence from activist shareholders, ultimately led to Comerica’s sale to Fifth Third Bancorp.
Evercore ISI now expects the acquisition to receive both regulatory and shareholder approval, with the transaction anticipated to close in late first quarter of 2026.
In other recent news, Comerica Inc . reported its second-quarter 2025 financial results, highlighting a 14% increase in earnings per share (EPS) compared to the previous quarter, reaching $1.42. The company’s net interest income remained stable at $575 million, with an increase in both average and period-end loans. These results indicate steady growth despite competitive pressures in the deposit market. In related developments, DA Davidson raised its price target for Comerica to $66.00 from $64.00, maintaining a Neutral rating. This adjustment is linked to Fifth Third Bancorp’s ongoing merger process with Comerica. The merger has shown constructive engagement with regulators and is projected to close by the end of the first quarter of 2026. These developments reflect significant strategic movements for Comerica, drawing attention from investors and analysts alike.
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