UPDATE: Citigroup Upgrades Comerica to Neutral, Maintains $28 PT

In a report published Monday, Citigroup Upgraded Comerica Inc.

from sell to Neutral, and maintained its price target of $28. Citigroup noted, "[We] are upgrading CMA from Sell to Neutral. CMA is down ~11% since early April versus its peer group average which is roughly flat over that period. At ~0.9 P/TBV, we see limited downside for CMA barring a material market sell-off. Our Sell rating on CMA had been premised on valuation. From a fundamental perspective, although the outlook remains challenging for all banks, we believe that CMA is doing what it can to navigate through tough conditions. It remains highly asset sensitive and is not locking in long duration earning assets at low rates. Also, it does not face an earnings cliff from declining mortgage fee income when the current refi wave ultimately abates. As such, if CMA were to selloff further, we would revisit it as a possible long candidate." Comerica closed at $28.44 on Friday.