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Keefe, Bruyette & Woods upgraded Comerica (NYSE:CMA) to Outperform from Hold as the Federal Reserve’s expected pivot to rate cuts “puts in motion a multi-year earnings improvement story and a capital improvement narrative,” analyst Christopher Mcgratty wrote in a note to clients.
That essentially eliminates two legs of the bear thesis on the stock, he noted. “Clear signs of M&A green shoots also now work in our favor, even though this is not our base case for CMA specifically.”
Comerica (CMA) stock rose 1.0% in Thursday premarket trading.
Mcgratty introduced 2026 EPS estimate of $6.00 (vs. consensus of $5.81) and 2027 EPS estimate of $7.25 (vs. $6.08 consensus). “To us, this material earnings improvement story is not nearly captured in either Comerica’s (CMA) valuation or the sell side support for the stock,” he said.
He raised his price target on the stock to $69 from $50.
The Outperform rating contrasts with the SA Quant rating, the average SA Analyst rating, and the average Wall Street rating, all at Hold.
