(CMA - Get Report)
of Dallas closed at $29.59 Tuesday, returning 16% year-to-date, following last year's 38% decline.
The shares trade for 0.9 times tangible book value, and for 11.3 times the consensus 2013 EPS estimate of $2.63. The consensus 2014 EPS estimate is $2.76. Based on a quarterly dividend of 15 cents, the shares have a yield of 2.03%.
Comerica was in second place in the UBS weighted ranking of home price changes, with prices increasing 7.17% year-over-year, through September.
net interest margin narrowed by 14 basis points from the previous quarter to 2.96%. Scinicariello said on Oct. 17 that the margin pressure was "overstated," as "significant portion should prove nonrecurring."
The analyst added that "several factors should mitigate the extent of future NIM impacts including normalized nonaccrual interest, lack of lease valuation adjustments, slowing loan mix shift, and the timing of QE3 and effect on MBS yields."
Scinicariello rates Comerica a "Buy," with a $37 price target, and estimates the company will earn $2.60 a share in 2013, increasing to EPS of $3.06 in 2014.
"A solid capital position remains a source of strength with Tier 1 Common=10.32% and TCE=10.25%," Scinicariello said, and "positive capital generation should keep the company comfortably in excess of required capital levels which positions CMA well for future deployment" of capital, and for the Federal Reserve's 2013 stress tests. "To the extent that capital is readily deployed into loan growth, this could lead to more rapid revaluation of the company, in our view."
Interested in more on Comerica? See TheStreet Ratings' report card for this stock.
Written by Philip van Doorn in Jupiter, Fla.