KeyCorp upgraded to Buy from Neutral at Citi

Citi analyst Keith Horowitz upgraded KeyCorp (KEY) to Buy from Neutral with an unchanged price target of $20. Following the recent pullback across the banking sector, the firm sees an attractive entry point for KeyCorp. With credit concerns mounting amid recently elevated concerns for a weakening macro backdrop, KeyCorp “should be a safe haven” with below-average credit risk and a “very strong” 9.8% proforma CET1 ratio, the analyst tells investors in a research note. Citi sees $2 in earnings per shared power likely showing through by 2027 verses the current $1.55 estimate for 2025. KeyCorp appears to trade at a “very cheap” valuation, the firm contends.