Analyst Manan Gosalia from Morgan Stanley maintained a Sell rating on Comerica and keeping the price target at $61.00.
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Manan Gosalia has given his Sell rating due to a combination of factors affecting Comerica’s financial outlook. Despite positive loan growth, which exceeded expectations, the company faces challenges with rising deposit costs and declining deposit balances. These factors are expected to pressure the net interest income (NII) moving forward, as management has guided towards the lower end of their previous NII growth expectations.
Additionally, while Comerica’s second-quarter earnings per share (EPS) surpassed estimates due to lower expenses and higher fees, these gains were partially offset by increased provisions. The company’s efficiency ratio is anticipated to remain high, near 70%, in the medium term, suggesting ongoing cost pressures. Consequently, Gosalia has adjusted the 2025 NII estimates downward, indicating a growth rate below the company’s guidance, which supports the Sell rating.
In another report released today, Barclays also maintained a Sell rating on the stock with a $68.00 price target.