RBC Capital cuts Comerica price target to $76, maintains outperform

Published 23/01/2025, 18:00
RBC Capital cuts Comerica price target to $76, maintains outperform

Comerica Incorporated (NYSE:CMA), headquartered in Dallas, Texas, is a financial services company with a focus on business banking, retail banking, and wealth management. With a market capitalization of $8.24 billion and an overall Financial Health score of "GOOD" according to InvestingPro, the bank's performance and outlook are closely watched by investors and analysts alike, as changes in the financial sector can have broader implications for the economy. For deeper insights into Comerica's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Comerica Incorporated, headquartered in Dallas, Texas, is a financial services company with a focus on business banking, retail banking, and wealth management. With a market capitalization of $8.24 billion and an overall Financial Health score of "GOOD" according to InvestingPro, the bank's performance and outlook are closely watched by investors and analysts alike, as changes in the financial sector can have broader implications for the economy. For deeper insights into Comerica's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Moreover, the report mentioned a particular challenge for Comerica in the medium term, which is the loss of the Direct Express program. This program has been identified as a potential deposit headwind that could impact the bank beyond the year 2025. In light of these considerations, RBC Capital has made adjustments to its estimates for Comerica.

Comerica Incorporated, headquartered in Dallas, Texas, is a financial services company with a focus on business banking, retail banking, and wealth management. With a market capitalization of $8.24 billion and an overall Financial Health score of "GOOD" according to InvestingPro, the bank's performance and outlook are closely watched by investors and analysts alike, as changes in the financial sector can have broader implications for the economy. For deeper insights into Comerica's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

This revised price target from RBC Capital follows a detailed analysis of Comerica's financial results and strategic positioning. As the market continues to evolve, investors will be keeping an eye on how Comerica adapts to both the opportunities and challenges presented in the financial landscape.

In other recent news, Comerica has been the subject of multiple analyst reviews following its recent earnings announcement. The bank reported operating earnings per share (EPS) of $1.29, surpassing both UBS's estimate of $1.24 and the consensus estimate of $1.25. However, UBS maintained a Sell rating on Comerica with a $64 target, citing a weaker pre-provision net revenue power for 2025 compared to Street estimates.

In a similar vein, Keefe, Bruyette & Woods, Baird, and DA Davidson adjusted their price targets for Comerica to $77, $75, and $67 respectively, while maintaining positive or neutral ratings. These changes were primarily driven by revisions to the bank's earnings outlook and its mixed financial results.

Raymond (NSE:RYMD) James also lowered its target for Comerica to $72, but noted that the risk-reward balance for the bank's stock remains positive. The firm anticipates that earnings estimates are nearing a low point, and the value of the bank's franchise could increase.

These are recent developments following Comerica's earnings announcement and reflect the views of multiple analysts on the bank's financial performance and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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