Comerica downgraded to Equal Weight from Overweight at Stephens

Stephens downgraded Comerica (CMA) to Equal Weight from Overweight with a price target of $64, down from $66. Comerica outperformed peers in Q1, reflecting optimism that bank M&A activity is set to accelerate, notes the analyst, who analyzed hypothetical M&A scenarios, including PNC Financial (PNC) buying Comerica for about $67 per share, or “only” a 13% premium. The firm is downgrading shares given the risk to revenue/EPS should the commercial loan demand remain muted, the eventual loss of Direct Express deposits, and limited upside in a sale, the analyst tells investors.