BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
In a robust display of market confidence, Keycorp stock soared to a 52-week high, reaching a price level of $17.06. This milestone underscores a significant period of growth for the company, which has seen its stock value climb by an impressive 26.38% over the past year. Investors have been closely monitoring Keycorp's performance, and this latest peak suggests a strong endorsement of the company's financial health and strategic direction. The 52-week high represents a pivotal moment for Keycorp, as market participants consider the stock's potential for sustained growth in the coming months.
In other recent news, Scotiabank has acquired a 14.9% stake in KeyCorp (NYSE:KEY) for $2.8 billion, marking a significant expansion for the Canadian bank into the U.S. banking sector. KeyCorp, which reported a 5% drop in profit for the second quarter, is expected to see a larger decline in average loans in 2024. Despite this, investment firms such as Stephens, RBC Capital Markets, and DA Davidson have raised their price targets for KeyCorp shares, citing a stable outlook and anticipated growth in net interest income.
In response to concerns over potential defaults in the commercial real estate sector, U.S. regional banks, including KeyCorp, have been strengthening their financial defenses. KeyCorp has also seen an increase in its Common Equity Tier 1 capital ratio to 10.5%, indicating a significant improvement in its financial health.
KeyCorp's net interest income is expected to benefit from the repricing of $9.3 billion in swaps and treasuries, contributing an additional $120 to $125 million in the second half of 2024. The bank maintains its forecast for a 10% or more increase in net interest income for the fourth quarter of 2024, aiming to surpass $1 billion. These are recent developments that investors should monitor closely.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.