Is Comerica Headed For A Net Interest Income Inflection? 'We Remain Optimistic,' Analysts Say
Portfolio Pulse from Priya Nigam
Comerica Inc (NYSE:CMA) reported its second-quarter results, leading to mixed analyst reactions. Truist Securities downgraded the stock from Buy to Hold, RBC Capital Markets reiterated an Outperform rating, and Piper Sandler maintained a Neutral Overweight rating. Analysts expressed concerns over non-interest bearing deposit outflows and revised earnings estimates for 2024 and 2025.
July 22, 2024 | 3:25 pm
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Comerica Inc (NYSE:CMA) reported its Q2 results, leading to mixed analyst reactions. Truist Securities downgraded the stock from Buy to Hold, citing concerns over non-interest bearing deposit outflows and lowered loan growth expectations. RBC Capital Markets reiterated an Outperform rating, noting better-than-expected core earnings. Piper Sandler maintained a Neutral Overweight rating but highlighted pressures on NII, fees, and expenses for Q3.
The downgrade from Truist Securities and concerns over non-interest bearing deposit outflows and lowered loan growth expectations are likely to put downward pressure on CMA's stock price in the short term. Although RBC Capital Markets and Piper Sandler provided more optimistic views, the overall sentiment is mixed, with significant concerns highlighted.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100