Comerica (CMA) Stock Forecast & Price Target

Comerica's financial performance exhibits a strong positive trajectory, highlighted by a 7.7% sequential increase in net interest income to $575 million and a margin expansion of 26 basis points to 3.06%. The bank's core net interest margin also improved, rising 12 basis points to 2.97%, driven by a notable decrease in interest-bearing deposit costs and steady loan yields. Additionally, Comerica projects net interest income growth of 6% to 7% for 2025, alongside a more modest expense increase of 3%, indicating robust profitability prospects moving forward.

Comerica's core fee income experienced a notable decrease of 2.9% quarter-over-quarter and 6% year-over-year, falling to $269 million, which was below expectations. The bank's CET1 capital ratio also witnessed a slight decline, dropping 7 basis points to 11.89%, indicating potential capital challenges amid its asset base of approximately $80 billion. Additionally, average deposits are forecasted to decline by 2% to 3% in FY25, further emphasizing concerns about the bank's growth prospects and overall financial stability.