
KeyCorp (KEY) Stock Forecast & Price Target
KeyCorp (KEY) Analyst Ratings
Bulls say
KeyCorp's strong financial performance is evident in its significant 3.7% quarter-over-quarter increase in net interest income, reaching $1.193 billion, bolstered by a 9 basis point rise in net interest margin, now at 2.75%. Investment banking revenues have shown robust growth, increasing approximately 19% year-to-date to $353 million, driven by enhanced capital markets activity and an improving M&A pipeline. Furthermore, the tangible common equity (TCE) ratio rose to 8.06%, and the Common Equity Tier 1 (CET1) ratio improved to 10.3%, indicating solid capital strength that supports a favorable outlook for the bank's ongoing financial stability and growth.
Bears say
KeyCorp's stock outlook is negatively impacted by a significant decrease in key lending segments, with consumer loans down $584 million, commercial real estate down $497 million, and lease financing down $139 million, despite a rise in commercial and industrial loans. Additionally, the bank is adjusting its revenue forecasts downward for 2026, with total revenue projected at $7.933 billion, reflecting lower average loan growth rates and reduced fee income expectations. The potential for a recession in 2026 introduces further risks, including anticipated declines in earnings, profitability, and increases in credit losses, which could exacerbate the bank's financial challenges.
This aggregate rating is based on analysts' research of KeyCorp and is not a guaranteed prediction by Public.com or investment advice.
KeyCorp (KEY) Analyst Forecast & Price Prediction
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