KeyCorp price target lowered to $19 from $21 at TD Cowen on M&A risk

Published 20/10/2025, 14:42
KeyCorp price target lowered to $19 from $21 at TD Cowen on M&A risk

Investing.com - TD Cowen lowered its price target on KeyCorp (NYSE:KEY) to $19.00 from $21.00 on Monday while maintaining a Hold rating on the stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 19.6x and offers a substantial 4.8% dividend yield, having maintained dividend payments for 54 consecutive years.

The firm cited M&A risk as a key factor for its cautious stance, despite acknowledging strong fundamentals in KeyCorp’s recent performance.

KeyCorp posted strong third-quarter 2025 results that reflected solid top-line performance and an improved guidance outlook, according to TD Cowen.

The bank showed momentum building across its fundamentals with a clearer path toward a 13-15% return on tangible common equity (ROTCE), the firm noted.

TD Cowen explained its Hold rating stems from the "door remaining open for bank M&A" combined with KeyCorp "not having a strong currency" despite the encouraging quarterly results.

In other recent news, KeyCorp reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $0.41, compared to the forecasted $0.38. Revenue also exceeded predictions, reaching $1.9 billion against the expected $1.88 billion. Despite the positive results, investor concerns about future challenges were noted. Additionally, DA Davidson has lowered its price target for KeyCorp to $21 from $22, maintaining a Buy rating, while Jefferies reduced its target to $18 from $20, keeping a Hold rating. Both firms acknowledged KeyCorp’s strong third-quarter performance, with DA Davidson highlighting increased full-year revenue guidance and Jefferies noting net interest margin expansion. These recent developments reflect the mixed sentiment among analysts regarding KeyCorp’s future prospects.

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