Goldman Sachs analyst Ryan Nash downgraded Comerica (CMA) to Neutral from Buy and lowered his price target for the shares to $84 from $89. While loan growth has begun to improve from the lows, a lack of additional interest rate hikes, along with more exposure to consumer deposits continuing to re-price higher, likely means that the company's margins will begin to compress beyond Q1, Nash tells investors in a research note. He believes this will "pressure" consensus estimates. In the Regional Banks space, the analyst is most upbeat on Signature Bank (SBNY), Citizens Financial (CFG) and Cadence Bancorp (CADE) into Q1. He's less optimistic on First Horizon (FHN) and Huntington Bancshares (HBAN).

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Sees FY24 average loans up 3%-5%. Sees FY24 average deposits up 2%-4%. Sees FY24 noninterest income up 5%-7%. Sees FY24 noninterest expense up 4.5%. Sees FY24 net charge-offs 25-35 basis points. Sees FY24 effective tax rate 19%. Says believes there will eventually be rate cuts. Sees Q1 as trough for net interest income. Comments and guidance taken from Q1 earnings conference call.

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."