Investing.com -- Comerica (NYSE:CMA) shares were downgraded by both Evercore ISI and JPMorgan, as analysts flagged a deteriorating growth outlook and limited earnings flexibility amid macro uncertainty and client caution.
Evercore ISI cut its rating to Underperform from In Line and reduced its 2025 and 2026 EPS estimates by 2% and 3%, citing weaker fee income trends and a more conservative view of pre-provision net revenue.
"CMA is not immune to revenue pressures ahead, including a further pullback in loan demand and weaker customer-related fee trends," Evercore analysts wrote, adding the bank lacks expense levers to offset top-line softness.
JP Morgan also downgraded Comerica to Underweight, saying the stock remains expensive at 11x 2025 earnings, a 20% premium to peers, despite underperformance in key growth metrics.
Analysts highlighted that recent EPS strength was helped by “non-core” items, including $0.16 from favorable BSBY impacts in Q1.
Both firms pointed to revised guidance that now sees 2025 average loan growth declining 1-2%, down from a previous forecast of flat to up 1%, with JPMorgan citing cautious customer sentiment and continued drag from commercial real estate.
Comerica’s NII outlook for 2025 was revised to 5-7% growth, though both brokers noted much of that increase is tied to technical factors rather than core balance sheet expansion.
Evercore cut its price target to $50 from $65, while JPMorgan trimmed its EPS estimates to $4.73 for 2025 and $5.32 for 2026.
Related articles
Comerica shares downgraded by Evercore, JP Morgan on weakening outlook, valuation
Meta launches Edits, a video app aimed at creators
Trade deals are key to halting US tech decline, Wedbush’s Ives says
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.