KeyCorp upgraded to Buy at UBS on expected regional bank ‘catch-up’ trade

As previously reported, UBS upgraded KeyCorp (KEY) to Buy from Neutral with a price target of $22, up from $16. With worst-case scenarios on the economy from tariff policy “off the table for now,” the analyst thinks regional banks are “ripe for a catch-up” and believes KeyCorp will be “an outsized beneficiary of this bounce” given its “superior capital arsenal,” strong momentum in loan growth and exposure to a capital markets recovery in the second half. The firm, which also see the potential for net interest income upside surprises from KeyCorp, thinks the bank is poised for EPS upgrades and multiple expansion, the analyst added.