Stifel Nicolaus Downgrades Comerica to “Sell” (CMA)
On Monday analysts at Stifel Nicolaus downgraded financial services firm Comerica Incorporated (CMA) as its shares are trading at a significant premium with low return on assets.
The analysts downgraded CMA from “Hold” to “Sell.”
A Stifel Nicolaus analyst commented, “The shares are trading at a 25% premium to the rest of our large cap bank coverage universe despite having one of the lowest projected ROAs. With approximately 72% of the company’s earning assets tied to the short-end of the yield curve (not the long end), we believe the market is way ahead of itself in assuming just how much the company benefits from the recent rise in long-term interest rates.”
Comerica shares were down 31 cents, or -0.88%, during morning trading on Monday. The stock is up about +16% over the past year.
The Bottom Line
Shares of Comerica (CMA) have a dividend yield of 1.92% based on Friday’s closing price of $35.37 and the company’s annualized dividend payout of 68 cents per share.
Comerica Incorporated (CMA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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