KeyCorp price target lowered to $11 from $12 at Morgan Stanley

Morgan Stanley analyst Manan Gosalia lowered the firm’s price target on KeyCorp to $11 from $12 and keeps an Equal Weight rating on the shares following the company’s presentation at the firm’s Financials Conference. Deposit balances are performing in line with expected seasonal trends in Q2, but this is coming with a higher cost of deposits as deposit competition is accelerating faster than management previously expected, the analyst tells investors. Following the conference presentation, the firm is lowering its Q2 EPS forecast by 22%, its 2023 forecast by 12% and its 2024 view by 7%.