Comerica Raises $392.2 Million with Preferred Stock Issue

Comerica has issued preferred stock for $392.2 million, with the sale of 16,000,000 depositary shares representing a 1/40th ownership interest in a 6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. The issuance is expected to impact Comerica's capital structure and market positioning. Analysts rate the stock a Sell with a $50.00 price target.

Comerica Incorporated has issued preferred stock for $392.2 million, with the sale of 16,000,000 depositary shares representing a 1/40th ownership interest in a 6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. The issuance is expected to impact Comerica's capital structure and market positioning. Analysts rate the stock a Sell with a $50.00 price target.

The preferred stock offering, announced on July 2, 2025, is a significant move for Comerica, as it aims to enhance its capital base and meet shareholder expectations. The fixed-rate reset feature of the preferred stock offers income-focused investors an attractive option, potentially broadening the appeal of the stock. However, the introduction of variable-rate preferred stock does not materially shift the current catalysts or the main risks associated with Comerica, such as subdued loan growth and margin pressure from rising deposit costs.

The quarterly cash dividend affirmation of US$0.71 per share, payable on October 1, 2025, further underscores Comerica's commitment to shareholder returns. This action provides reassurance to investors seeking consistency, although structural challenges tied to loan and margin expansion continue to temper the near-term outlook.

Despite the positive aspects of the preferred stock offering, persistent competitive pressures on deposit pricing and their impact on earnings remain a risk investors should not ignore. Comerica's narrative projects $3.5 billion in revenue and $703.0 million in earnings by 2028, requiring 3.1% yearly revenue growth and a $11.0 million earnings increase from $692.0 million today. This forecast yields a $66.65 fair value, in line with its current price.

Fair value estimates from five members of the Simply Wall St Community range from US$50 to US$94.32, reflecting wide variance in growth expectations. Many believe Comerica’s ability to manage deposit costs will shape its future profitability, so it pays to compare these viewpoints.

References:
[1] https://simplywall.st/stocks/us/banks/nyse-cma/comerica/news/could-comericas-cma-new-preferred-stock-offering-redefine-it
[2] https://www.marketbeat.com/instant-alerts/filing-barnett-company-inc-has-546000-stock-holdings-in-kinetik-holdings-inc-nysekntk-2025-08-10/