Comerica just downgraded at JPMorgan, here’s why

JPMorgan analyst Steven Alexopoulos downgraded Comerica to Neutral from Overweight with a price target of $57, up from $53. The analyst sees the Comerica’s net interest margin reaching an inflection point over the near term but says this a trend expected for the majority of banks and the outlook appears to be fully baked into the stock. Although Comerica has significantly reduced its asset sensitivity profile through swaps and securities, the bank is slightly worse positioned than most of its peers should the Federal Reserve cut rates in 2024, the analyst tells investors in a research note.