UBS Remains Sidelined on Comerica (CMA) Following 2Q - PT to $5

UBS reiterated a Neutral rating on Comerica (NYSE: CMA), and raised the price target to $45.00 (from $41.00), following the company's 2Q earnings report. UBS also raised 2016 EPS estimates to $2.66 from $2.49, primarily due to the 2Q core beat.

Analyst David Eads commented, "CMA's performance targets appear ambitious, especially on the expense side, where the $160 million target for operating expense reductions represents 8.5% of the expense base from 2015. That is a greater expense opportunity than we had expected for CMA, and we remain concerned that this level of cost cutting could have an impact on revenues. We see improvements in the efficiency ratio (towards the <60% target) as a key measure of CMA's performance on the plan, and expect other strategic alternatives will remain a consideration if they have challenges in achieving the ultimate goal of a >10% ROTE."

For an analyst ratings summary and ratings history on Comerica click here. For more ratings news on Comerica click here.

Shares of Comerica closed at $44.79 yesterday.

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