DA Davidson Downgrades Comerica (CMA) to Neutral, 'Expecting more NII pressure than forecast'

DA Davidson analyst Peter Winter downgraded Comerica (NYSE: CMA) from Buy to Neutral with a price target of $56.00 (from $63.00).

The analyst comments "Downgrading CMA to NEUTRAL (was Buy) and lowering PT to $56 (was $63). CMA's B/S is slightly liability sensitive making it difficult for CMA to outperform in a higher for longer rate environment. CMA's net interest income guidance in January was down 11% in 2024 using the forward curve as of 12/31, which incorporated 6-rates cuts with the first-rate cut in March. However, given recent comments by Fed Chairman Powell who said a March rate cut is unlikely and recent employment data remains fairly strong, we believe the first-rate cut is more likely in June, which will likely lead to additional downside pressure to NII than CMA is forecasting."

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 $48.97 yesterday.

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