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Investing.com - Keefe, Bruyette & Woods downgraded Comerica (NYSE:CMA) from Outperform to Market Perform while raising its price target to $93.00 from $73.00.
The rating change comes in response to the proposed merger between Fifth Third Bancorp and Comerica, which the research firm views as beneficial for shareholders of both companies.
Keefe, Bruyette & Woods noted that the merger "has the potential to re-inject oxygen into the M&A trade for bank investors, which is supportive of multiples."
The significant price target increase to $93.00 reflects the merger exchange ratio and aligns with how the firm values Fifth Third Bancorp.
The downgrade to Market Perform was made to maintain consistency with the firm’s rating on Fifth Third Bancorp and with its standard approach to valuing companies involved in mergers.
In other recent news, Fifth Third Bancorp announced its acquisition of Comerica in an all-stock transaction valued at $10.9 billion, paying a 20% premium to Comerica’s 10-day volume-weighted average price. Following this announcement, DA Davidson raised its price target for Fifth Third Bancorp to $52, maintaining a Buy rating. Moody’s Ratings affirmed Fifth Third’s ratings but changed its outlook to negative, while placing Comerica’s ratings under review for a potential upgrade. Jefferies raised its price target for Comerica to $85, citing strategic benefits from the merger with Fifth Third, particularly in integrating commercial loans with retail deposits. Additionally, Morgan Stanley upgraded Comerica’s stock rating to Equalweight, setting a price target of $83 after the acquisition news. In other developments, Comerica announced the promotion of Kristina Janssens to Senior Executive Vice President and Chief Risk Officer, effective September 19, 2025. Janssens will report to Chairman, President, and CEO Curt Farmer and the Enterprise Risk Committee of the Board of Directors.
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