KeyCorp price target raised to $17 from $16 at Wedbush

Wedbush raised the firm’s price target on KeyCorp (KEY) to $17 from $16 and keeps a Neutral rating on the shares. The firm notes KeyCorp has announced that Scotiabank (BNS) will make a $2.8B minority investment in the company, representing 14.9% pro forma ownership. In conjunction with the capital raise, KeyCorp intends to evaluate a potential repositioning of its AFS securities portfolio using roughly half of the proceeds from the investment, with reinvestment proceeds expected to pull forward $400M of net interest income, Wedbush adds. The firm views this deal as a positive for KeyCorp, as it should help to bolster its capital position and accelerate its net interest income ramp.