Dallas, TX-based Comerica is a financial services company and bank.
BMO believes that a horizontal Shared National Credit (SNC) review across all of the largest energy lenders will lead to an increase in criticized assets.
"We believe this review drove CMA's higher LLP outlook for 1Q16 and as a result adjust our earnings per share estimates downward," the firm wrote in an analyst note.
BMO is lowering its 2016 earnings per share estimates by 9% and 2017 estimates down by 8%, largely on higher credit costs and net charge offs (NCOs) from energy exposures.
A high 95% of Comerica's energy loans are SNC's and subject to the regulatory review, the firm noted.
Shares of Comerica are retreating 0.13% to $37.82 in after-hours trading on Thursday.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins.
As a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CMA