According to Raymond James, it may be time to buy Comerica after its stock underperforms recently. Analyst Michael Rose upgraded the stock to outperform the market performance. The analyst also has a price target of $85 per share for the financial services stock, representing a roughly 21.6% gain from Friday’s closing price of $69.90. after earnings flanked its relatively solid fundamental position is leading to a potential recession,” Rose wrote in a note Monday. Comerica stock outperforms in 2021 and started to underperform the S&P 500 as the Federal Reserve began its rate hike cycle this year.However, in 2022 they are down 19.7%, while the broader market index is down 16 .8% Shares also fell 9% on Oct. 19, after the company announced third-quarter results and when management recommended net interest income and net margin (NII/NIM) peaking earlier than expected Net interest income is the difference a bank earns between its lending income and the interest it pays its customers, however, the stock should still be bought at current levels currently, as it is underperforming its peers and could strengthen its portfolio as the Federal Reserve pivots away from its path of aggressive rate hikes, according to the analyst. ch. “While it is not surprising in our eyes (as we see similar dynamics for the majority of peers/industry), we do see a strong capital/liquidity position, density in both an attractive/stable market, historically good asset quality and a Hedging Strategy that provide protection against falling NIM/NII if/when the Fed pivots combined with a relatively attractive valuation compared to its peers over history offering an attractive entry point at current levels,” writes Rose. “In return, we now view risk-reward positively,” he said. added. —Michael Bloom of CNBC contributed to this report.
