Comercia: Despite Disappointing Numbers Potential for 72% Share Price Increase

Last Updated: 8. November 2023By

Are you familiar with the company Comercia? This is a US financial services provider that belongs to the 25 largest banking companies in the US. The corporation specializes in mid-tier lending, secured loans, international financial services, and customized portfolio solutions for private and business customers. In addition, the bank has a Wealth Management Division that specializes in affluent private customers.

Profit and income decline In the 3rd quarter, the company reported a net interest income of 601 million US dollars compared to 707 million US dollars in the previous year. The net profit was 251 million US dollars compared to 351 million US dollars a year ago. The diluted earnings per share from continuing operations was 1.85 US dollars compared to 2.63 US dollars in the previous year. Analysts had expected an earnings of 1.69 US dollars per share.

Further profit decline expected in 4th quarter The Texas-based company Comercia expects a decline in net interest income – the difference between the interest rates banks receive for loans and those they pay for deposits – between 5 and 6% for the 4th quarter.

Trust is slowly returning Customer deposits have stabilized recently and trust in regional banks has been restored after customers withdrew their money from smaller banks following the crisis in March.

Potential return of 72% Conclusion: The weak figures have not gone unnoticed by the share price. Within one year Comercia has lost over 36%. However, most analysts are viewing the sell-off as an opportunity for buying. 14 out of 24 analysts are recommending buying, 8 are recommending holding, and only 2 are recommending selling. The average analyst target price is 50 US$. The highest analyst target price is 73 US$, offering you a potential return of 72%. Additionally, you as an investor will benefit from a dividend yield of 3.78%.