KeyCorp stock price target raised to $21 by BofA on improved NIM outlook

Published 23/07/2025, 12:46
KeyCorp stock price target raised to $21 by BofA on improved NIM outlook

Investing.com - BofA Securities has raised its price target on KeyCorp (NYSE:KEY) to $21.00 from $20.00 while maintaining a Buy rating on the stock. The $20.5 billion bank’s shares currently trade at $18.71, with InvestingPro data showing a robust dividend yield of 4.38%.

KeyCorp reported second-quarter earnings per share of $0.35, slightly below BofA’s and consensus estimates of $0.36, despite better pre-provision net revenue that exceeded expectations. The bank has maintained dividend payments for an impressive 54 consecutive years, according to InvestingPro analysis.

The bank’s investment banking fees reached $178 million, exceeding estimates by 17.7% compared to BofA’s forecast and 12.9% versus consensus, which helped boost total fees above projections.

KeyCorp has revised its fiscal year 2025 guidance upward, now projecting net interest income growth of 20-22%, improved from its previous 20% forecast, driven by stronger loan growth with average balances expected to decline just 1-3% versus the earlier projection of 2-5%.

The bank also improved its net interest margin outlook to approximately 2.75% in the fourth quarter of 2025, up from its previous guidance of 2.70%+, which is expected to drive fourth-quarter net interest income growth to more than 11% year-over-year compared to the prior forecast of 10%+.

In other recent news, KeyCorp reported its Q2 2025 earnings, revealing revenue that exceeded expectations at $1.84 billion, marking a 2.22% surprise over the forecast. However, the company’s earnings per share did not meet projections, coming in at $0.25 compared to the anticipated $0.35, a shortfall of 28.57%. This mixed performance highlights the company’s revenue strength despite challenges in profit margins. There were no major announcements regarding mergers or acquisitions. Additionally, there were no significant analyst upgrades or downgrades reported for KeyCorp recently. The company continues to navigate its financial landscape amid these developments. These updates provide investors with a clearer understanding of KeyCorp’s current financial standing.

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