KeyCorp price target raised to $19 from $17 at Argus

Argus raised the firm’s price target on KeyCorp (KEY) to $19 from $17 and keeps a Buy rating on the shares after its Q3 earnings beat. The company’s lending balances have remained under pressure in 2024 reflecting weak client demand for loans given higher interest rates, flat utilization rates, and an intentional runoff of low-yielding consumer loans as they pay down and mature, but the firm sees a better 2025 outlook for the lending business as interest rates move lower and as the company undergoes a balance sheet repositioning, aided by a recent minority investment by Bank of Nova Scotia, the analyst tells investors in a research note.