UPDATE: Citigroup Lowers PT on Comerica Following 2Q13 Results

In a report published Wednesday, Citigroup analyst Josh Levin reiterated a Neutral rating on Comerica (NYSE: CMA), but lowered the price target from $41.00 to $40.00.

In the report, Citigroup noted, “2Q13 results validated that near-term fundamentals remain weak for CMA and most of its regional bank peers. Although loan growth was up 3.5% LQA, we calculate that absent growth in mortgage banker loans, core C&I loan growth was closer to flat. CMA did not change its '13 loan growth guidance (up y/y but at a lower growth rate than '12 versus '11), but our sense is that as investors update their models, they will have to dial back '13 loan growth assumptions a bit. That does not move the '13 earnings needle all that much since the stock of loans is more important than the flow. As a point of references, every ~1% change in loan growth changes our '14 and '15 estimates by ~$0.01 and ~$0.05, respectively. Also, non-interest expense will tick up a bit in 2H13 due to CCAR related costs and a handful of seasonal items but provision expense should be lower than previously expected. Non-interest bearing deposits fell ~$907 mm q/q, but CMA says this was largely because customers were paying taxes.”

Comerica closed on Tuesday at $40.64.