Comerica is a nationwide US financial services provider and is one of the top 25 banks in the country. The company’s focus is on middle-market loans, secured loans, international financial services, and specialized deposit offerings for private and business clients.

Significant decrease in profit For the fourth quarter, the company reported a net interest income of $584 million compared to $742 million in the previous year. Net income amounted to $33 million, down from $350 million in the previous year.

Special expenses burden profit The sharp decline is primarily due to a special levy that banks must pay to the Federal Deposit Insurance Corp. to replenish their deposit insurance fund, which was depleted during the recent banking crisis.

Net interest income expected to decrease Comerica expects a decrease in net interest income of 11% for 2014. The company is paying its customers higher interest rates on deposits to prevent them from switching to other options. At the same time, there is a lower demand for loans.

Dividend yield of 4.08%, P/E ratio of only 9.5 Conclusion: In December 2023, the stock has risen by almost 40% from $40 to $56. Since the beginning of the year, the signs point to a correction. However, analysts are still slightly positive. 10 out of 24 analysts recommend buying, 11 recommend holding, and three analysts believe selling would be wise. The average analyst price target is $60 (downgraded from the previous month). The highest analyst price target is $71 (also downgraded from the previous month). A look at the valuation shows that despite the decline in earnings, the US bank is only valued at a P/E ratio of 9.5. In addition, as an investor, you benefit from a dividend yield of 4.08%.