Truist Securities Starts Comerica (CMA) at Hold

Truist Securities analyst Brian Foran initiates coverage on Comerica (NYSE: CMA) with a Hold rating and a price target of $65.00.

The analyst comments "We are Hold on Comerica. Its tangible book has recovered ~50% from 3Q23 trough and we expect it grow by another ~10% over the next two years helped by bond, swap, and BSBY tailwinds. However, beyond the simple interest rate story, we focus on Comerica’s recent soft loan growth and lack of ability to grow overtime, plus ROTCE stuck at 11% over the next two years. Thus, we see a slight upside by applying a 1.2x tangible as investors wait for loan growth to converge to 1.5% increase per year which is Comerica’s 15-20Y CAGR level, or even a better rate. Comerica is a $8bn market cap regional bank with $80B assets focused on middle markets commercial and real estate lending supported by wealth management and retail banking businesses. Most of the lending business are from shared national credit relationships, multi-family CRE and auto dealership, while customer NIB deposits provide a sizeable amount of funding which is above industry average."

For an analyst ratings summary and ratings history on Comerica click here. For more ratings news on Comerica click here.

Shares of Comerica closed at $63.07 yesterday.

You May Also Be Interested In

• Freedom Broker Starts Holley (HLLY) at Buy
• DA Davidson Starts Snap Inc (SNAP) at Neutral
• Raymond James Starts Byline Bancorp (BY) at Market Perform