KeyCorp, the Financial sector company, was revisited by a Wall Street analyst today. Analyst David George from Robert W. Baird downgraded the rating on the stock to a Hold and gave it a $18.00 price target.
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David George has given his Hold rating due to a combination of factors influencing KeyCorp’s current market position. The recent rally in regional banks has limited the potential for further upside in KeyCorp’s stock, which has already seen a significant increase of 35% since early April. This performance has outpaced both the regional bank index and the broader market, suggesting that the stock’s current price already reflects its near-term earnings potential.
George believes that while KeyCorp’s operational performance is stable, the market has accurately priced in the company’s long-term earnings capacity. The stock’s valuation appears to reflect the anticipated recovery in net interest income, with normalized earnings projected to be around $2 per share by fiscal year 2027. Additionally, potential risks such as lower investment banking revenue and significant exposure to private credit add to the cautious outlook, reinforcing the decision to maintain a Hold rating.
In another report released on June 26, Barclays also maintained a Hold rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is neutral on the stock.