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Comerica’s analyst price target increased from $67.38 to $69.00, as analysts cite improving net interest income projections and a more constructive operating environment for mid-cap banks.

Analyst Commentary

Recent Street research on Comerica highlights a mix of optimistic and cautious views among analysts, reflecting both improved expectations for bank fundamentals and some persistent risks facing the sector.

• Bullish analysts cite upward revisions to Comerica's price targets, pointing to stronger than expected loan and deposit growth and expanding net interest margins as contributors to improved financial projections.
• The outlook for mid-cap banks has turned more constructive, driven by a steepening yield curve and lower short-term rates. These factors are viewed as providing a favorable backdrop for profitability and growth.
• Expectations are rising for a rebound in commercial lending activity in the second half of the year, supporting the case for further performance upside as the operating environment improves.
• Recent increases in earnings per share projections for 2025 are attributed to share buybacks and a modest acceleration in net interest income. This suggests confidence in Comerica's execution and capital management strategies.

• Despite higher target prices, several analysts have maintained Neutral or Underweight ratings. They emphasize that upside may be limited by competitive deposit dynamics and pressures on net interest income in future years.
• Ongoing transitions, such as the replacement of non-interest bearing deposits with higher cost funding, are expected to temper longer-term earnings potential.
• The mid-cap bank sector continues to trail the broader market and reflects cautious sentiment regarding regulatory changes and the pace of recovery in loan growth.
• Some analysts caution that capital-rich peers may present stronger relative value opportunities, which could limit Comerica's valuation expansion compared to industry leaders.

What's in the News

• HoldCo Asset Management, an activist investor with a 1.8% stake in Comerica, has announced plans to nominate around five directors to Comerica's 11-person board in an effort to push for a sale of the bank, citing years of underperformance (WSJ).
• On September 2, 2025, HoldCo Asset Management formally communicated its intention to launch a board fight at Comerica if the company does not pursue a sale and is demanding strategic changes and new board representation (Key Developments).
• Earlier in July 2025, HoldCo Asset Management publicly urged Comerica to begin a sale process and criticized management's responses to questions about performance and strategy during the Q2 earnings call (Key Developments).
• Between April and June 2025, Comerica repurchased 1,763,000 shares for $100 million. This contributed to a cumulative total of over 96 million shares repurchased under its ongoing buyback program (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has risen slightly from $67.38 to $69.00, indicating modest improvement in market expectations for Comerica's share value.
• The Discount Rate decreased slightly from 7.66% to 7.64%, reflecting a marginal decline in the perceived risk or required return for the bank.
• Revenue Growth projections increased modestly from 3.20% to 3.27%.
• Net Profit Margin has edged down from 19.95% to 19.78%, suggesting a small anticipated contraction in profitability.
• Future P/E ratio estimates have risen, moving from 14.19x to 14.62x, which points to higher valuation multiples assigned to Comerica's forward earnings.