KeyCorp (NYSE:KEY) Given New $27.00 Price Target at DA Davidson

Key Points

• DA Davidson raised its KeyCorp price target to $27 from $26 and maintained a “buy” rating, implying nearly 28% upside from the previous close.
• KeyCorp’s latest quarterly results exceeded expectations, with EPS of $0.51 versus the $0.46 consensus and revenue of approximately $2.05 billion, up 8.3% year over year.
• Analyst sentiment remains broadly positive, with MarketBeat reporting a “Moderate Buy” consensus, although some concerns persist around valuation, rising expenses, capital ratios and recent insider selling.

KeyCorp (NYSE:KEY - Get Free Report) had its price objective hoisted by stock analysts at DA Davidson from $26.00 to $27.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage currently has a "buy" rating on the financial services provider's stock. DA Davidson's price objective would suggest a potential upside of 27.99% from the stock's previous close.

A number of other equities research analysts have also commented on KEY. Stephens restated an "overweight" rating and set a $26.00 price objective on shares of KeyCorp in a report on Tuesday, September 15th. Citigroup reiterated a "neutral" rating on shares of KeyCorp in a research note on Tuesday, September 22nd. Wall Street Zen downgraded KeyCorp from a "hold" rating to a "sell" rating in a report on Saturday. TD Cowen assumed coverage on shares of KeyCorp in a research note on Thursday, October 8th. They issued a "buy" rating and a $23.00 target price for the company. Finally, Keefe, Bruyette & Woods boosted their target price on shares of KeyCorp from $25.00 to $26.00 and gave the stock an "outperform" rating in a report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $46.22.

KeyCorp Trading Up 1.4%

Shares of KeyCorp stock traded up $0.28 during trading on Wednesday, hitting $21.09. 8,952,588 shares of the company were exchanged, compared to its average volume of 13,763,769. The firm has a market capitalization of $22.51 billion, a P/E ratio of 12.26, a price-to-earnings-growth ratio of 0.75 and a beta of 1.08. The firm's fifty day moving average price is $21.17 and its 200 day moving average price is $21.83. The company has a debt-to-equity ratio of 0.63, a current ratio of 0.84 and a quick ratio of 0.83. KeyCorp has a 1-year low of $16.91 and a 1-year high of $24.07.

KeyCorp (NYSE:KEY - Get Free Report) last released its quarterly earnings data on Tuesday, October 20th. The financial services provider reported $0.51 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.05. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The business had revenue of $2.05 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same quarter last year, the firm earned $0.41 EPS. KeyCorp's quarterly revenue was up 8.3% compared to the same quarter last year. As a group, sell-side analysts expect that KeyCorp will post 1.83 earnings per share for the current fiscal year.

Hedge Funds Weigh In On KeyCorp

A number of hedge funds have recently added to or reduced their stakes in KEY. North Reef Capital Management LP bought a new stake in KeyCorp in the first quarter valued at approximately $253,632,000. Weiss Asset Management LP purchased a new position in shares of KeyCorp during the 1st quarter worth approximately $7,040,000. Bank of Nova Scotia boosted its holdings in shares of KeyCorp by 0.6% during the 1st quarter. Bank of Nova Scotia now owns 162,996,326 shares of the financial services provider's stock valued at $3,268,076,000 after buying an additional 900,951 shares in the last quarter. Commerce Bank purchased a new stake in KeyCorp in the second quarter worth about $2,657,000. Finally, Royal Bank of Canada increased its position in KeyCorp by 10.0% during the 1st quarter. Royal Bank of Canada now owns 5,140,288 shares of the financial services provider's stock valued at $103,062,000 after buying an additional 466,273 shares in the last quarter. Institutional investors own 79.69% of the company's stock.

KeyCorp News Summary

Here are the key news stories impacting KeyCorp this week:

• Positive Sentiment: Earnings beat and record revenue: KeyCorp reported $0.51 in diluted EPS, above the $0.46 consensus estimate and up 24% year over year. Revenue reached a record $2.04 billion, an 8% annual increase. KeyCorp third-quarter earnings release
• Positive Sentiment: Improving core banking trends: Net interest margin expanded to 2.95%, net interest income rose 9.8% year over year, and average deposits increased $3.6 billion sequentially versus $1.5 billion growth in average loans. Investment banking and debt-placement fees also climbed 27% sequentially. KeyCorp revenue and profit report
• Positive Sentiment: Constructive outlook and shareholder returns: Management raised full-year revenue expectations toward the upper end of its range, while targeting net interest margin above 3.25% by the fourth quarter of 2027. KeyCorp also repurchased $320 million of stock and maintained its $0.205 quarterly dividend. KeyCorp margin and NII outlook
• Positive Sentiment: More favorable analyst view: One recent Seeking Alpha analysis upgraded KeyCorp, citing attractive net interest income growth and a differentiated margin profile. KeyCorp rating upgrade analysis
• Neutral Sentiment: Scotiabank ownership remains a watch item: Bank of Nova Scotia outlined the expected contribution from its KeyCorp stake ahead of its own results, while also flagging a Chile-related tax charge. The update may affect perceptions of KeyCorp’s strategic relationship with Scotiabank but does not directly change KeyCorp’s reported quarter. Scotiabank KeyCorp contribution update
• Negative Sentiment: Valuation and execution concerns remain: Bank of America lowered its price target to $23, while commentary pointed to rising expenses and somewhat weaker capital ratios despite the earnings beat. Recent insider activity also showed sales rather than purchases, potentially tempering bullish sentiment. Bank of America KeyCorp price target cut

KeyCorp Company Profile

KeyCorp is a financial services company headquartered in Cleveland, Ohio, and the parent company of KeyBank National Association. Through KeyBank, it provides retail and commercial banking services to individuals, businesses, institutional clients and government entities.

KeyBank's offerings include checking and savings accounts, consumer lending, mortgages, home equity financing, credit cards, business loans, treasury management and payment services. The company also provides investment banking and capital markets services through KeyBanc Capital Markets, as well as wealth management, investment management and personal financial planning services.

KeyCorp traces its history to 1825, when the institution that became KeyBank was established in Albany, New York.

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