CMA - RayJay upgrades Comerica to Strong Buy views risk-reward more positively

2023-04-06 12:25:31 ET

Raymond James on Thursday revisited its coverage of banking stocks, upgrading Comerica ( NYSE: CMA ) to Strong Buy from Outperform as it views risk-reward more positively than it did earlier.

"We believe the recent selloff in the stock related to concerns around its outsized uninsured deposit concentration is unwarranted," said analyst Michael Rose.

However, operating EPS estimates for 2023/2024 were slashed to $8.65/$8.00 from $9.85/$9.65. Price target was also reduced to $57 from $84 (42.8% potential upside to its last close).

Meanwhile, Raymond James downgraded Renasant ( RNST ), Triumph Financial ( TFIN ), and Trustmark ( TRMK ) to Market Perform from Outperform to reflect revised EPS estimates.

• Triumph ( TFIN ) EPS estimates were lowered, largely due to continued moderation in the trucking market. Estimates for 2023E/2024E were cut to $1.90/$2.95 from $2.05/$3.10.
• Renasant ( RNST ) was downgraded as Raymond James sees its risk-reward as balanced. Operating EPS estimates for 2023/2024 were cut to $3.08/$2.85 from $3.30/$3.15.
• Trustmark ( TRMK ) was also downgraded on balanced risk-reward. Operating EPS estimates for 2023/2024 were cut to $2.30/$1.90 from $2.40/$2.25.

Earlier, BMO strategist Belski said buy the dip in financial stocks .

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