Ahead of the Bell: Comerica upgraded on lower price

NEW YORK—Deutsche Bank analyst Mike Mayo upgraded shares of Comerica Inc. to "Buy" late Sunday, saying the bank's stock is inexpensive, and the company faces relatively little risk from loans to consumers.

Comerica stock is down almost 40 percent in the last year, but Mayo said the Dallas-based company is doing well in non-consumer lending businesses, taking only small losses in the first quarter. Only eight percent of Comerica's loans are consumer related, he wrote.

Based on a conversation with management, Mayo said he expects small, stable loan losses for the rest of this year. He raised his rating from "Hold," and said the stock is worth $52 per share. Comerica stock finished at $37.89 Friday. Mayo's previous price target was $36 per share.

He added that when the Federal Reserve takes a pause from cutting interest rates -- or begins to raise them -- Comerica will benefit. He trimmed his profit estimates for 2008 and 2009, however.

Comerica shares are trading at their lowest price in five years. On April 23, they reached an 11-year low of $32.13.