Comerica (CMA) PT Raised to $85 at Jefferies

Jefferies analyst David Chiaverini raised the price target on Comerica (NYSE: CMA) to $85.00 (from $75.00) while maintaining a Hold rating.

The analyst comments "Deal should deliver multiple strategic benefits to the Fifth Third franchise. By integrating CMA's granular commercial loan portfolio with FITB's strong retail deposit base, the combined entity should achieve a more balanced funding mix and diversified revenue profile. Pro-forma metrics imply an improved credit and funding quality, with shared national credit concentration declining to 36% from 44%, and NIB deposits rising to 29% from 26% of total deposits. Management is targeting a ROTCE above 19% and an efficiency ratio in the low-to-mid 50s by 2027, metrics that suggest stronger returns than organic growth with manageable execution risk. While revenue synergies are not included in deal assumptions, the combined bank should also benefit from scale in commercial payments and wealth & asset management. The transaction is also expected to streamline the Direct Express transition, representing $3.5–$4.0B in NIB deposits."

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