Comerica assumed with Sell from Neutral at UBS

UBS analyst Nicholas Holowko downgraded Comerica (CMA) to Sell from Neutral with a price target of $64, up from $60, after assuming coverage of name. The firm sees below-Street pre-provision net revenue and “optionality” for Comerica. UBS says the rising tide of regulatory relief has the potential to lift multiples in the mid-cap bank space. But with the election “essentially unwinding the valuation hangover” from the 2023 regional bank crisis, “stock selection is crucial in 2025,” the analyst tells investors in a research note. UBS thinks the names to own in the current backdrop are those where outsized growth potential, capital optionality, and strategic value are not priced into shares today. Its outlook incorporates a Fed Funds rate of 4% by year-end 2025, and its earnings estimates are in-line with consensus over the next two years.