Comerica: Deposit Pressures Reflected After A Mixed Q4 (Rating Upgrade)

Jan. 27, 2025 8:00 AM ETComerica Incorporated (CMA) StockCMA
Seeking Profits
4.62K Followers
(11min)

Summary

  • Comerica's shares have been mixed, gaining 15% but lagging due to declining deposits and loss of a government contract, leading to a "hold" rating.
  • Q4 results showed weak deposit growth but impressive pricing actions, with a shift from brokered to core deposits, aiding margin expansion.
  • Loan demand remains tepid, but credit quality is solid with limited commercial real estate exposure, and the bank benefits more from falling rates.
  • Despite some downside risks, CMA stock is trading around fair value, with limited upside but a secure dividend, justifying an upgrade to "hold".

Comerica Bank office building in downtown Long Beach, Los Angeles County, California, USA

JHVEPhoto

Comerica overview

Shares of Comerica (NYSE:CMA) have been a mixed performer over the past year, gaining 15% but lagging the market and many financials, as the company has struggled with declining non-interest-bearing (NIB) deposits and the loss of a government contract. Shares pulled

This article was written by

4.62K Followers
Over fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About CMA Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on CMA

Related Stocks

SymbolLast Price% Chg
CMA
--