On Friday, Piper Sandler adjusted its price target on shares of Comerica Incorporated (NYSE:NYSE:CMA), nudging it up to $54.00 from the previous $53.00. The firm maintained its Neutral stance on the bank holding company's stock. This adjustment follows Comerica's first-quarter earnings and an updated outlook provided by the company.
The revision in the price target is a result of changes to the earnings per share (EPS) estimates made by Piper Sandler. The 2024 earnings estimate has been modified from $5.36 to $5.18 per share, reflecting the shortfall reported in the first quarter compared to the firm's initial estimate. Minor adjustments of $0.06 per share have been made to the estimates for the remainder of the year.
Furthermore, the 2025 EPS forecast for Comerica has been increased from $6.22 to $6.49. The new price target of $54.00 is approximately 10 times the anticipated 2024 earnings, indicating a slight enhancement in the valuation while the rating remains unchanged.
Comerica's first-quarter performance and forward-looking statements have been key factors influencing Piper Sandler's revised estimates. The bank's recent financial results have led to a recalibration of expectations for the coming years.
InvestingPro Insights
As Comerica Incorporated (NYSE:CMA) navigates through its financial year, recent data from InvestingPro provides a broader picture of the company's market standing and future expectations. With a market capitalization of $6.82 billion and a P/E ratio standing at 10.19, Comerica's valuation reflects its current earnings potential. Notably, the company has shown a large price uptick over the last six months, with a 25.48% total return, indicating strong investor confidence despite a forecasted net income drop this year.
Two InvestingPro Tips shed light on Comerica's financial health and market expectations. Firstly, analysts have revised their earnings downwards for the upcoming period, which may have influenced Piper Sandler's price target adjustment. Secondly, Comerica has maintained its dividend payments for 54 consecutive years, a testament to its commitment to shareholder returns, underscored by a substantial dividend yield of 5.61% as of the last dividend date.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available that delve deeper into Comerica's financials and market performance. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights. Visit https://www.investing.com/pro/CMA to explore further.
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