With interest rates so low, loan demand pretty sluggish, and regulations
chewing into once-lucrative sources of income, most banks are stuck in a
holding pattern. That's particularly true for those banks with
relatively clean credit stories that don't have the tailwind of
improving provision and loan loss reserve releases to pump up results.
That puts investors in a tough place with Comerica (NYSE:CMA).
Certainly there isn't much near-term growth potential to get excited
about here. Yet, the company remains very highly leveraged to an
eventual rise in interest rates. At the same time, the company's
underlying quality and footprint make it an appealing M&A
candidate should the board decide it's time to look to sell. In the
meantime, though, it's hard to get excited about these shares at the
present valuation.
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http://www.investopedia.com/stock-analysis/041613/comerica-looks-slowcoiling-spring-cma-wfc-usb-cbsh-cfr.aspx
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