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3 'Quite Attractive' Regional Bank Value Plays from UBS

Shares of Comerica (CMA - Get Report) of Dallas closed at $29.19 Monday, returning 14% year-to-date, following a 38% decline during 2011.

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Based on a 15-cent quarterly payout, the shares have a dividend yield of 1.98%.

The shares trade for 0.9 times their reported March 31 tangible common equity per share of common stock of $32.06, and for 11 times the consensus 2013 earnings estimate of $2.71. The consensus 2012 EPS estimate is $2.06.

UBS's price target for Comerica is $37, and "in order to more fully account for the execution of CMA's approved capital plan" raised its 2012 EPS estimate for the bank to $2.50 from $2.42, and its 2013 estimate to $2.82 from $2.78.

Scinicariello said that "in order for CMA to sustain its relative outperformance among regional banks, positive trends from 1Q12 need to exhibit follow-through in the areas of loan growth, NIM, and expense management," and that UBS expects "consistency and do not anticipate any change to 2012 guidance."

Scinicariello also said that "CMA has more than delivered on its promise to aggressively manage its excess capital, increasing its dividend by 50% to a 25% [of earnings] payout level and authorizing the repurchase of $375MM of stock (we project ~$120MM in 2Q12)."

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


-- Written by Philip van Doorn in Jupiter, Fla.

>Contact by Email.

Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.
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