Jefferies analyst Kenneth Usdin downgraded Comerica (CMA) to Hold from Buy with an unchanged price target of $84. Following negative earnings revisions post the company's Q1 results, the analyst does not see enough upside to warrant a Buy rating. Comerica's net interest income outlook is "proving even more challenging," with another deposit cost increase in March weighing most on forward estimates, Usdin tells investors in a research note. He prefers putting new money to work into Fifth Third Bancorp (FITB) for exposure to the regional banks.

Sees Q2 net interest income stable to up to 1%. Sees Q2 noninterest income up 2% to 4%. Sees Q2 noninterest expense down approximately 6%. Sees Q2net charge-off ratio 35-45 basis points. Sees Q2 allowance for credit losses $0 to $25M. Sees Q2 effective tax rate 22%-23%. Guidance taken from Q1 presentation slides.

UBS analyst Erika Najarian lowered the firm's price target on Comerica to $55 from $59 and keeps a Neutral rating on the shares. Despite the company's liability sensitive positioning, management reiterated the 2024 net interest income outlook for a decline of 11% year over year which is now based on two 25 basis point cuts, the analyst tells investors in a research note. The firm continues to view the NII outlook as a "show me" story given the uncertainty surrounding the macro-economic backdrop, and while there are attractive drivers to the 2025 outlook, including the roll-off of interest rate swaps, repricing in the securities book and tailwinds from lower deposit costs, success in 2025 is predicated on the 2024 exit point, UBS argues.

Reports Q1 CET1 capital ratio 12.01%. Reports Q1 net charge-offs .1%. "Today we reported first quarter earnings per share of $0.98," said Curtis Farmer, Comerica chairman and CEO. "Strategic rationalization efforts from 2023 and favorable pipeline trends position us for growth. Deposits outperformed normal seasonal patterns as we added new customers and expanded existing relationships while maintaining pricing discipline. Our liquidity strategy remained a highlight as we normalized our cash position, significantly reduced wholesale funding and successfully executed a record $1.0 billion debt issuance. We experienced ongoing, expected credit normalization, while net charge-offs of 10 basis points continued to be historically low. We are committed to running an efficient organization as we navigate expense pressures and execute on the action plans announced last quarter. Conservative capital management and lower loan balances further enhanced our capital position and drove our estimated CET1 ratio to 11.47, well above our 10% target."