NEW YORK (TheStreet) -- Barclays increased its price target on Comerica (CMA) to $50, increased its estimates and set an "underweight" rating. The firm noted the company's higher fee income and net interest margin.
The stock was up 0.25% to $52 just after the market opened on Wednesday.
Separately, TheStreet Ratings team rates COMERICA INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMERICA INC (CMA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Commercial Banks industry average. The net income increased by 3.7% when compared to the same quarter one year prior, going from $134.00 million to $139.00 million.
- COMERICA INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COMERICA INC increased its bottom line by earning $2.86 versus $2.68 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.86).
- The gross profit margin for COMERICA INC is currently very high, coming in at 94.71%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.61% trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 2.6%. Since the same quarter one year prior, revenues slightly dropped by 2.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: CMA Ratings Report