DA Davidson Cuts Price Target on Comerica (CMA) Following Quarterly Miss

DA Davidson is maintaining its Buy rating on shares of Comerica (NYSE: CMA) following Q2 earnings, but is lowering its price target from $45.50 to $40.50.

The company reported Q2 earnings of $0.53, under the Streets estimate of $0.54 and the firms of $0.56. During the quarter average total loans were down 4 percent linked quarter annualized with average C&I loans up 3.3 percent.

CMA’s provision expenses were 52 percent of net charge-offs versus the 48 percent in Q1. Management's guidance for second half provisioning is 67-88 percent of first half levels.

The firm is raising 2011 EPS estimate from $1.78 to $1.98 and lowering its 2012 estimate from $2.63 to $2.59.

An analyst at the firm reports, "The increase to 2011 estimates is driven by a combination of factors including a lower loan loss provision, higher fee income levels, and lower operating expenses versus our previous estimate. Our 2012E GAAP estimate is slightly lower due to higher merger costs in 2012."

For more ratings news on Comerica click here and for the rating history of Comerica click here.

Shares of Comerica closed at $32.48 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Baird on Nurix (NRIX) Earnings Amid 7% Drop: '2Q Print Solid as Breadth of Development Expands'
• Piper Sandler on FirstSun Capital Bancorp (FSUN): 'We expect shares to underperform on Friday'
• Apollo agrees to buy EasyJet Plc. (EZJ:LN) (ESYJY); Bernstein SocGen shares investment implications