Loading...
Loading...
In a report published Monday, BTIG Research analyst Mark Palmer downgraded the rating on Comerica
CMA from Buy to Neutral, and removed the $37.00 price target.
In the report, Palmer noted, “Our thesis on CMA had been predicated on our view that the stock was extremely cheap relative to its peer group, that the company's commercial and industrial (C&I) loan growth would be supportive of its net interest margin (NIM) such that its contraction would be less than some had feared, that the negative effect of the low interest rate environment was largely reflected in its NIM, and that its total payout ratio is meaningfully higher than most of its peer group. This thesis has been validated as CMA's C&I loan growth has been solid, which has helped the company to avoid the severe contraction in NIM that some had been predicting. The company's robust total payout ratio was highlighted in March when CMA announced that the Federal Reserve had approved its 2013 capital plan and that it plans to buy back up to $288mm in shares during the four-quarter period beginning in 2Q13 and ending in 1Q14.”
Comerica closed on Monday at $37.47.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in