Comerica Incorporated (CMA) Raised to “Buy” at Zacks Investment Research
Comerica Incorporated (NYSE:CMA) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Thursday. The brokerage presently has a $80.00 price target on the financial services provider’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 15.14% from the company’s previous close.
According to Zacks, “Comerica’s shares have outperformed the industry over the past year. The company’s second-quarter 2017 results surpassed the Zacks Consensus Estimate. Results reflected increased revenues and improving credit quality along with lower expenses. Comerica’s future prospects look promising as it improvised the financial targets for revenue and efficiency initiatives (GEAR Up). Further, easing of margin pressure driven by the Fed rate hikes is encouraging. Notably, the expectation of lesser regulations will act as a tailwind for the company in the medium term. Though exposure to Michigan and California, two challenging economies, remains a headwind, Comerica’s active involvement in capital deployment activities is commendable.”
Other analysts also recently issued research reports about the stock. Jefferies Group LLC reiterated a “buy” rating and issued a $81.00 target price on shares of Comerica in a report on Monday, May 15th. Instinet reiterated a “neutral” rating and issued a $71.00 target price (up previously from $68.00) on shares of Comerica in a report on Wednesday, July 12th. Barclays PLC reiterated an “underweight” rating and issued a $76.00 target price (up previously from $72.00) on shares of Comerica in a report on Wednesday, July 12th. Morgan Stanley reiterated an “equal weight” rating and issued a $75.00 target price (up previously from $71.00) on shares of Comerica in a report on Thursday, July 6th. Finally, BidaskClub downgraded shares of Comerica from a “strong-buy” rating to a “buy” rating in a report on Thursday, June 22nd. Three analysts have rated the stock with a sell rating, eleven have given a hold rating and nine have given a buy rating to the stock. Comerica currently has a consensus rating of “Hold” and a consensus price target of $71.65.
Shares of Comerica (NYSE:CMA) traded down 3.04% on Thursday, hitting $69.48. The company’s stock had a trading volume of 1,176,432 shares. Comerica has a one year low of $44.55 and a one year high of $75.72. The stock has a 50-day moving average price of $73.03 and a 200 day moving average price of $70.89. The firm has a market cap of $12.22 billion, a price-to-earnings ratio of 17.35 and a beta of 1.47.
Comerica (NYSE:CMA) last announced its quarterly earnings results on Tuesday, July 18th. The financial services provider reported $1.13 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.06 by $0.07. The business had revenue of $776 million during the quarter, compared to the consensus estimate of $777.08 million. Comerica had a net margin of 23.22% and a return on equity of 9.60%. The business’s revenue was up 8.8% compared to the same quarter last year. During the same quarter last year, the firm earned $0.58 EPS. Equities research analysts predict that Comerica will post $4.59 EPS for the current year.
Comerica announced that its board has initiated a stock buyback program on Wednesday, June 28th that permits the company to buyback $605.00 million in shares. This buyback authorization permits the financial services provider to repurchase up to 4.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its shares are undervalued.
Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in Comerica by 6.7% in the second quarter. Vanguard Group Inc. now owns 18,161,488 shares of the financial services provider’s stock valued at $1,330,147,000 after buying an additional 1,142,275 shares during the period. BlackRock Inc. boosted its stake in Comerica by 0.5% in the second quarter. BlackRock Inc. now owns 11,319,900 shares of the financial services provider’s stock valued at $829,069,000 after buying an additional 51,426 shares during the period. State Street Corp boosted its stake in Comerica by 11.3% in the second quarter. State Street Corp now owns 9,990,021 shares of the financial services provider’s stock valued at $731,672,000 after buying an additional 1,010,965 shares during the period. JPMorgan Chase & Co. boosted its stake in Comerica by 22.3% in the second quarter. JPMorgan Chase & Co. now owns 5,040,167 shares of the financial services provider’s stock valued at $369,142,000 after buying an additional 919,333 shares during the period. Finally, Wellington Management Group LLP boosted its stake in Comerica by 1.5% in the first quarter. Wellington Management Group LLP now owns 4,928,411 shares of the financial services provider’s stock valued at $337,991,000 after buying an additional 71,159 shares during the period. 83.47% of the stock is owned by institutional investors and hedge funds.
Comerica Incorporated is a financial services company. The Company’s principal activity is lending to and accepting deposits from businesses and individuals. The Company’s segments include the Business Bank, the Retail Bank, Wealth Management, Finance and Other. The Business Bank serves middle market businesses, multinational corporations and governmental entities by offering various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services.
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