KeyCorp price target raised to $20 from $18 at TD Cowen on loan growth

Published 23/07/2025, 18:22
KeyCorp price target raised to $20 from $18 at TD Cowen on loan growth

Investing.com - TD Cowen has raised its price target on KeyCorp (NYSE:KEY) to $20.00 from $18.00 while maintaining a Hold rating on the stock. Currently trading at $18.80, KeyCorp, with a market capitalization of $20.59 billion, offers a substantial dividend yield of 4.38% and has maintained dividend payments for 54 consecutive years.

The firm cited KeyCorp’s strong loan growth trends, which are helping to push net interest income (NII) higher. This improved loan performance represents a positive development for the bank’s financial outlook, supported by InvestingPro data showing expected sales growth of 75% for the current year. The bank maintains a FAIR Financial Health Score, indicating stable operational fundamentals.

Despite the price target increase, TD Cowen maintained its Hold rating, noting that it needs to see value drivers expand beyond "what is being provided by an underwater swap running off."

The analyst report suggested that if KeyCorp’s loan momentum could be matched with stronger growth in low-cost deposits, this combination "could be the recipe to see KEY move to the head of the pack."

TD Cowen’s updated $20 price target reflects the bank’s NII momentum and strong loan growth performance observed in the most recent quarter.

In other recent news, KeyCorp’s second-quarter revenue for 2025 exceeded expectations, coming in at $1.84 billion, which represents a 2.22% surprise over forecasts. However, the company’s earnings per share were reported at $0.25, falling short of the projected $0.35 by 28.57%. Additionally, BofA Securities raised its price target for KeyCorp to $21.00 from $20.00, while maintaining a Buy rating. This adjustment was based on an improved net interest margin (NIM) outlook. Despite the earnings per share miss, KeyCorp’s pre-provision net revenue exceeded expectations. These developments reflect ongoing analyst evaluations and market reactions to KeyCorp’s financial performance.

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