As previously reported, Wells Fargo analyst Mike Mayo downgraded Comerica to Underweight from Equal Weight with a $71 price target, given his view that the stock will underperform the banking industry over the next 12 months, consistent with his firm's new rating system. Strategically, Comerica maintains a disjointed franchise that has contributed to a quarter century of stock underperformance and creates more issues as the "Goliaths" expand to their markets, he contends. Financially, the analyst estimates below peer EPS growth from 2019-2021 given a mostly plain vanilla bank with more dependency on traditional spread revenues. A new CEO also reduces the chance for a major positive strategic move and can give the new CEO a "free pass" to reposition the firm, Mayo adds.

Truist lowered the firm's price target on Comerica to $60 from $62 and keeps a Buy rating on the shares as part of a broader research note recapping Q1 earnings among Community and Regional Banks. The firm's updated model for Fed funds rate forecast calls for zero cuts in 2024 and four 25bps cuts in 2025 from three in 2023 and 2024 previously, the analyst tells investors in a research note. Truist is also cutting its FY24 and FY25 EPS on the bank to $5.07 and $6.40 from $5.16 and $6.34, with estimate revisions primarily driven by higher net interest margins and offset partially by lower fee income and higher operating expenses in 2024.