Mike Mayo, an analyst from Wells Fargo, maintained the Buy rating on KeyCorp (KEY – Research Report). The associated price target was lowered to $18.00.
Protect Your Portfolio Against Market Uncertainty
- Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
- Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Mike Mayo’s rating is based on KeyCorp’s strong position in several key areas. The company has maintained its guidance for a 20% growth in net interest income (NII), supported by favorable competition, strategic reinvestment rates, and growth in commercial loans, particularly in affordable housing and renewable energy sectors. KeyCorp’s net interest margin is expected to improve, indicating a positive outlook for profitability.
Additionally, KeyCorp’s capital markets activities are performing well despite market volatility, with significant achievements in commercial mortgage banking and loan syndications. The company’s capital position is robust, aided by an infusion from Scotia, allowing for strategic growth opportunities. While there are risks such as economic uncertainties and potential impacts from tariffs, the overall sentiment is optimistic, with management focusing on smaller, strategic acquisitions and technological investments to drive future growth.
Mayo covers the Financial sector, focusing on stocks such as Fifth Third Bancorp, JPMorgan Chase, and M&T Bank. According to TipRanks, Mayo has an average return of 13.1% and a 64.85% success rate on recommended stocks.
In another report released on April 28, Evercore ISI also maintained a Buy rating on the stock with a $17.00 price target.