Evercore ISI has revised its rating on Comerica (CMA, Financial), moving it from In Line to Underperform. This change comes with a new price target of $50, a reduction from the previous $65. The decision is largely driven by concerns over the company's fundamentals, which are under pressure as client activity diminishes in a climate of macroeconomic uncertainty.
The financial services firm anticipates that Comerica will face headwinds, including reduced loan demand and a decline in customer-related fee trends. These factors are expected to impact the bank's revenue streams negatively. Furthermore, Evercore ISI suggests that Comerica may not have the necessary flexibility in managing expenses to effectively shield its earnings against these pressures.
The firm also warns of ongoing risks to Comerica's earnings, which could lead to a prolonged impact on its relative market valuation over time. Investors are being cautioned about the persistent challenges that could weigh down Comerica's financial performance in the foreseeable future.
