S&P Reiterates its BUY Rating on Comerica, Target Price Reduced

October 10 00:00 2011

NEW YORK, October 10 (RainbowNewsLine.com) – Analyst Erik Oja of S&P Equity Research reiterates his BUY Rating on the shares of Comerica (NYSE: CMA), while reducing his estimates for the company. The target price has been reduced from $44 to $27.

Analyst Erik Oja, in a research note published on October 7, mentions that the downward revision in the target price is to reflect the recent decline in bank multiples. The target price is depending on a premium to peers 12.1x forward four quarters EPS estimated at $2.22, equal to discount to peers 0.75x our $35 estimates of year-end tangible book value per share. The analyst maintains BUY rating mainly because he believes the company has better equity capital ratio compared to its peers, lower cost deposit base, and expected loan growth. The EPS estimate for 2011 has been reduced from $2.25 to $2.18.

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