CMA - Comerica Zions upgraded to Neutral at Baird as PPNR outlook brightens

Baird analyst David George upgrades Comerica (CMA) and Zions Bancorporation (NASDAQ:ZION) to Neutral from Underpeform as their preprovision net revenue (PPNR) outlook improves and valuations become "more interesting." "Following significant underperformance, and a generally more constructive PPNR outlook for regional banks, we feel the aggressive short case for regionals is getting tougher to make given current valuations," George wrote in a note to clients. As a result of the recent weakness, bank stocks are trading at ~6.5x forward PPNR, generally in line with historical averages and with most stocks close to fair value in many cases, he added. Generally, George expects more upbeat PPNR outlooks from regional banks as they report Q1 earnings. Note that Comerica (CMA) will report Q1 results on Wednesday, April 20, before the market opens, and Zions (ZION) will post earnings on Monday, April 25 after the close of trading. Previously (April 1), Comerica was upgraded

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Comerica, Zions upgraded to Neutral at Baird as PPNR outlook brightens