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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.
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