Analyst Review Alert: Comerica Incorporated (NYSE:CMA)

Analysts are weighing in on how Comerica Incorporated (NYSE:CMA), might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.9. The stock is rated as buy by 4 analysts, with 2 outperform and 22 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 30.00 analysts offering adjusted EPS forecast have a consensus estimate of $0.69 a share, which would compare with $0.73 in the same quarter last year. They have a high estimate of $0.72 and a low estimate of $0.63. Revenue for the period is expected to total nearly $715.63M from $682.00M the year-ago period.

For the full year, 30.00 Wall Street analysts forecast this company would deliver earnings of 2.50 per share, with a high estimate of $2.65 and a low estimate of $2.32. It had reported earnings per share of $2.92 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $2.88B versus 2.74B in the preceding year.

The analysts project the company to maintain annual growth of around 3.52% percent over the next five years as compared to an average growth rate of 8.18% percent expected for its competitors in the same industry.

Among the 28 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for CMA is $43.80 but some analysts are projecting the price to go as high as $52.00. If the optimistic analysts are correct, that represents a 15 percent upside potential from the recent closing price of $45.29. Some sell-side analysts, particularly the bearish ones, have called for $34.00 price targets on shares of Comerica Incorporated (NYSE:CMA).

In the last reported results, the company reported earnings of $0.73 per share, while analysts were calling for share earnings of $0.75. It was an earnings surprise of -2.70%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Comerica Incorporated, through its subsidiaries, provides various financial products and services. It operates through three segments: Business Bank, Retail Bank, and Wealth Management. The Business Bank segment offers various products and services, such as commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services to middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides small business banking and personal financial services, including consumer lending, consumer deposit gathering, and mortgage loan origination. This segment also offers a range of consumer products consisting of deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans. The Wealth Management segment provides products and services comprising fiduciary services, private banking, retirement services, investment management and advisory services, and investment banking and brokerage services. This segment also sells annuity products, as well as life, disability, and long-term care insurance products. The company operates in Texas, California, and Michigan, as well as in Arizona and Florida, the United States; Canada; and Mexico. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.