Comerica initiated with a Buy at UBS

UBS analyst Brody Preston initiated coverage of Comerica with a Buy rating and $68 price target. The analyst believes that the market is mispricing the bank’s earning power, noting that the firm’s target earnings multiple of 7.5-times suggests that the market is pricing in $5.80 of EPS in 2024 vs. the UBS estimate of $8.98. The firm further cites Comerica’s balance sheet flexibility relative to its SMID cap peers and also believes that the bank can re-price deposits at a faster pace than its management is currently messaging.