On Monday, Piper Sandler adjusted the price target for Comerica Incorporated (NYSE:CMA) shares, listed on the New York Stock Exchange under the ticker NYSE:CMA, from $51.00 to $52.00, while reiterating a Neutral rating on the company's shares. This change comes as the firm recalibrates its expectations for Comerica's future earnings per share (EPS).
The adjustment in the price target to $52 reflects a new valuation that takes into account the current market conditions of Comerica's peers, despite a revision in the earnings forecast that suggests a more challenging financial outlook for the company. The revised 2024 EPS estimate has been decreased from $4.82 to $4.59, and the 2025 EPS forecast has been adjusted downward from $5.96 to $5.22.
The decision to maintain a Neutral rating follows a significant drop in Comerica's share price, which experienced a downturn exceeding 10% on Friday. The reassessment by Piper Sandler indicates a cautious stance on the bank's stock, balancing the higher valuations seen among Comerica's peers with the anticipated reduction in earnings.
Comerica's second-quarter results and updated outlook were the catalysts for the revised estimates. The bank's recent performance and future projections have led to a reevaluation of its stock's potential, prompting Piper Sandler to set the new price target while acknowledging the less optimistic earnings environment.
Investors and market watchers will likely monitor Comerica's stock performance in the coming days to see how it aligns with Piper Sandler's updated assessment and price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.