Comerica upgraded at Argus on rising interest rates, still the stock drops

Argus Research analyst Kevin Heal upgraded regional bank Comerica (NYSE:CMA) to Buy from Hold after it posted record Q3 earnings, primarily due to the rise in short-term interest rates.
"Looking ahead, we expect Comerica (CMA) to benefit from higher short-term interest rates for longer and continued strong credit quality in the loan book," Heal wrote in a note to clients.
In addition, he expects mid-single digit loan growth with gains in General, National Dealer Services, and Environmental Services offset by lower Mortgage and Equity Fund Services.
"In all, we believe the stock undervalued at current levels and that a Buy rating is now appropriate," Heal said.
Comerica (CMA) stock, however, has dropped 4.4% in Thursday afternoon trading, along with other regional bank stocks after KeyCorp (KEY) and Fifth Third Bancorp (FITB) posted weaker-than-expected Q3 results.
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SA contributor Seeking Profits isn't as bullish on CMA, saying peaking NIM and declining deposits are problematic