Analysts at Truist Financial have reduced their price target for Comerica (NYSE:CMA) from $58.00 to $49.00, according to a research note released on Wednesday, September 27th. This revision by Truist Financial indicates a potential upside of 22.53% from the company’s previous close.
Shares of CMA opened at $39.99 on Wednesday, displaying a price fluctuation over the past year, with a low of $28.40 and a high of $77.34. The company currently has a market capitalization of $5.27 billion and a price-to-earnings ratio of 4.17.
Comerica Incorporated is engaged in providing various financial products and services through its subsidiaries, operating within segments such as Commercial Bank, Retail Bank, Wealth Management, and Finance.
Under its Commercial Bank segment, Comerica offers an array of products and services including commercial loans and lines of credit, deposits, cash management solutions, capital market products, international trade finance facilities, letters of credit services, foreign exchange management services as well as syndication services for loans. These are tailored to meet the needs of different businesses ranging from small and medium-sized enterprises to multinational corporations and governmental entities.
In its most recent quarterly earnings report released on July 21st, Comerica exceeded analysts’ expectations by reporting earnings per share (EPS) of $2.01 for the quarter compared to the consensus estimate of $1.86 EPS – an outperformance by $0.15 EPS. Furthermore, Comerica displayed a return on equity of 25.54% along with a net margin of 27.01%. The company recorded revenue amounting to $1.38 billion during this period as opposed to analysts’ projection of $904.80 million in revenue.
Based on these figures and performance indicators unveiled from its quarterly report release earlier this year, equities research analysts maintain an average expectation for Comerica to post 7.72 earnings per share for the current year.
As investors consider these factors and evaluate the revised price target proposed by Truist Financial, they should take into account various aspects such as Comerica’s market performance, financial strength and results of its recent operations. Assessing these components in a thorough manner will aid investors in their decision-making process regarding whether or not to invest in Comerica.
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Mixed Opinions and Investor Interest Surround Comerica’s Stock
In recent weeks, a number of financial analysts have voiced their opinions on Comerica, a leading financial services provider. One such analyst was 58.com who reaffirmed their “maintains” rating on the company’s shares in a report released on June 29th. This was followed by Citigroup restating a “buy” rating and establishing a price target of $58.00 on Comerica’s shares in a research note issued on September 19th.
Another prominent financial institution, JPMorgan Chase & Co., also revised their price objective for Comerica from $46.00 to $52.00 in a research note published on June 29th. Similarly, Royal Bank of Canada raised their price objective from $54.00 to $58.00 and provided an “outperform” rating for the stock in their research note dated July 24th.
Additionally, Raymond James upped their price objective for Comerica from $53.00 to $57.00 and awarded the stock with a “strong-buy” rating in a research note released alongside Royal Bank of Canada.
According to Bloomberg.com, three equities research analysts have given the stock a sell rating, while seven have assigned it as hold, ten consider it as a buy recommendation, and one has bestowed the status of strong buy upon it. As per Bloomberg.com’s consensus view, the stock currently holds an overall rating of “Hold,” with an average target price of approximately $60.57.
The interest shown by various hedge funds and institutional investors is evident from recent changes made to their positions in Comerica (CMA). Private Trust Co. NA significantly increased its stake in the company by 639.7% during the first quarter, with an additional purchase of 499 shares – now resulting in ownership of 577 shares valued at $25,000.
Similarly, Desjardins Global Asset Management Inc. entered the scene during the first quarter and acquired a new position in Comerica, estimated at $25,000. FNY Investment Advisers LLC also capitalized on the opportunity and purchased Comerica shares valued at approximately $25,000 during the second quarter.
Moreover, TFC Financial Management Inc. added to its portfolio by buying Comerica shares during the first quarter valued at around $27,000. Finally, Deseret Mutual Benefit Administrators raised its stake in Comerica by 42.8% during the second quarter, acquiring an additional 199 shares and bringing their total ownership to 664 shares worth $28,000.
In conclusion, the consensus among analysts suggests a mixed view of Comerica’s stock with opinions varying from sell to strong buy. The involvement of hedge funds and institutional investors further demonstrates interest in this financial services provider. It will be interesting to monitor how these dynamics impact Comerica’s performance moving forward.
Note: The referenced information is based on data available as of September 27, 2023.
