Comerica received a price-target increase from RBC Capital Markets after the financial-services company on Tuesday reported Q2 adjusted earnings per share above analysts’ expectations despite a slight revenue miss. The new price target from RBC is $82 per share, up from $78. In comparison, the stock closed Tuesday at $73.05, down 2.0% on the day. RBC kept its investment rating on the stock at outperform.
RBC said its price-target boost for Comerica’s stock came as the firm raised its estimates for the company’s 2017 and 2018 EPS to reflect higher margin assumptions. Tuesday, Comerica posted Q2 adjusted EPS of $1.15, up from $0.77 a year earlier and above analysts’ mean estimate according to Capital IQ of $1.09. Revenue (net interest income plus noninterest income) rose to $776 million from $713 million in the year-earlier period, but that slightly missed analysts’ mean estimate of $777.1 million.