5 Bank Earnings Winners From Jefferies

Comerica
Shares of Comerica (CMA) of Dallas closed at $31.63 Thursday, returning 23% year-to-date.

The shares trade just below times tangible book value, according to HighlineFI, and for 12 times the consensus 2013 EPS estimate of $2.72. The consensus 2012 EPS estimate is $2.50.

Comerica on Tuesday reported first-quarter net income of $130 million, or 66 cents a share, soundly beating the consensus estimate of 55 cents.

In comparison, the company earned $96 million, or 48 cents a share, during the fourth quarter, and $103 million, or 57 cents a share, during the first quarter of 2011. The fourth-quarter results included $37 million in restructuring charges associated with the purchase of Sterling Bancshares last July.

The year-over-year earnings improvement reflected a 21% increase in net interest income, to $443 million in the first quarter, partially reflecting the Sterling acquisition, and a decline in the provision for loan losses to $23 million in the first quarter from $49 million a year earlier.

Following Comerica's earnings announcement, Usdin reiterated his "Hold" rating on the shares, but increased his price target by three dollars to $34, while raising his 2012 EPS estimate to $2.60 from $2.35, and his 2013 EPS estimate to $2.75 from $2.55.

The analyst said "we appreciate the earnings ramp CMA should get from higher interest rates (at some point), but current/next year valuations seem relatively fair at this time."�

Interested in more on Comerica? See TheStreet Ratings' report card for this stock.

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