Jefferies Maintains Hold Rating and $26 PT on Comerica

A report from Jefferies reiterates its Hold rating and $26 price target on Comerica (NYSE: CMA).

The report states, “A tepid loan growth outlook and reset in NIM expectations disappointed, but a larger balance sheet and lower expense run-rate was mostly offset in our model. We move our '12 est. up modestly (to $2.35 from $2.25) on lower provision, but '13 remains at $2.50. We continue to believe CMA's return on tangible equity (ROTE) will hover around 7% until rates increase, which warrants a below tang. Book valuation until fundamentals improve."

CMA closed yesterday at $23.13.