KeyCorp (KEY) PT Lowered to $22 at Truist Securities

Truist Securities analyst Brian Foran lowered the price target on KeyCorp (NYSE: KEY) to $22.00 (from $23.00) while maintaining a Hold rating.

The analyst commented: "Key is already running ahead of its full year target of +1-2% average loan growth, based on 1Q alone. They cited in a recent conference that in January total loan was up $0.6bn (+7% annualized), with commercial up almost $1.0bn. Our recent followup also suggests a similar tone in February, and coupled with strong H8 data we now estimate 1Q could see $2.0bn total loan growth with $2.7bn from C&I. However, whether the 1Q growth is durable going forward remains the debate. In fairness, last year Key's 1H outpaced 2H, with 1H +4% annualized and 2H more muted. We believe it is likely the case this year, and accordingly raise our EOP loan growth estimate from 3% to 5% for 2026 driven primarily by a stronger first half. On investment banking, we slightly trimmed the 2026 IB revenue from +6% y/y to +5% y/y given the recent capital markets disruption, while maintaining +3% y/y for 2027 as we are still in the middle of the M&A cycle and slowly growing. To sum up we raise our 2026 EPS from $1.80 to $1.85 and 2027 EPS from $2.15 to $2.20. We also update our price target from $23 to $22 based on our new 2027 EPS on a lower multiple of 10x which is ~1x discount to the stock’s historical average to account for heightened geopolitical and macro risk. We maintain our Hold rating."

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