KeyCorp downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Steven Alexopoulos downgraded KeyCorp to Underweight from Neutral with a price target of $17, down from $18.50. Heading into 2023, the analyst remains bearish on regional bank stocks and sees the sector as being "particularly vulnerable" to significant negative earnings revisions over the next several quarters. With the two earnings "needle movers" for regional banks being net interest margins and credit quality, Alexopoulos sees each of these risk factors as being skewed to the downside in terms of earnings impacts. He says KeyCorp is "more vulnerable than peers" to missing 2023 consensus earnings estimates "should a downside scenario play out."