Comerica price target lowered to $55 from $59 at UBS

UBS analyst Erika Najarian lowered the firm’s price target on Comerica to $55 from $59 and keeps a Neutral rating on the shares. Despite the company’s liability sensitive positioning, management reiterated the 2024 net interest income outlook for a decline of 11% year over year which is now based on two 25 basis point cuts, the analyst tells investors in a research note. The firm continues to view the NII outlook as a “show me” story given the uncertainty surrounding the macro-economic backdrop, and while there are attractive drivers to the 2025 outlook, including the roll-off of interest rate swaps, repricing in the securities book and tailwinds from lower deposit costs, success in 2025 is predicated on the 2024 exit point, UBS argues.