Analyst Manan Gosalia of Morgan Stanley maintained a Hold rating on KeyCorp, retaining the price target of $20.00.
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Manan Gosalia has given his Hold rating due to a combination of factors impacting KeyCorp’s financial outlook. The company has shown stronger than expected loan growth, which is a positive sign, and has slightly raised its net interest income (NII) guidance for 2025. However, these improvements align with the pre-earnings estimates from Morgan Stanley and consensus, suggesting limited upside potential.
Despite the positive momentum in loan growth and the company’s ability to meet its full-year commercial loan growth plan, the adjustments in NII guidance reflect modest improvements. The outlook for 2026 includes potential enhancements in net interest margin (NIM) through strategic loan portfolio adjustments and reduced liquidity balances, but these are longer-term prospects. As a result, the Hold rating reflects a balanced view of the near-term achievements and the longer-term strategic initiatives, indicating that the stock is fairly valued at present.
In another report released today, Barclays also maintained a Hold rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KEY in relation to earlier this year.