KeyCorp, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Manan Gosalia from Morgan Stanley maintained a Hold rating on the stock and has a $24.00 price target.
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Manan Gosalia has given his Hold rating due to a combination of factors surrounding KeyCorp’s financial outlook and strategic plans. The company’s net interest margin (NIM) and return on tangible common equity (ROTCE) targets are slightly ambitious compared to current projections. While KeyCorp aims for a NIM of 3.25% by the fourth quarter of 2027, current models suggest a slightly lower figure of approximately 3.15%. This discrepancy indicates potential challenges in achieving the desired financial metrics.
Additionally, although KeyCorp has plans to accelerate stock buybacks and loan growth, the anticipated improvements in capital deployment and balance sheet growth may not be sufficient to meet the company’s targets fully. The projected ROTCE of around 14.6% by the end of 2027, while close, still falls short of the 15%+ goal. These factors contribute to the decision to maintain a Hold rating, reflecting a cautious stance on the stock’s potential to meet its ambitious financial objectives.
In another report released on October 17, Truist Financial also maintained a Hold rating on the stock with a $19.00 price target.
Based on the recent corporate insider activity of 45 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.