KeyCorp upgraded to Neutral from Underweight at JPMorgan

JPMorgan analyst Steven Alexopoulos upgraded KeyCorp to Neutral from Underweight with a price target of $13, up from $11.50. The bank’s pace of deposit cost increases and non-interest bearing deposit outflows will likely to slow down from Q2, says the analyst, who now sees KeyCorp’s net interest income reaching a trough in the next one to two quarters. With the net interest income “miss risk story having reached the final innings” and the dividend cut risk abating in the face of the proposed capital rules providing the company with more runway, KeyCorp’s risk/reward is now more balanced, the analyst tells investors in a research note.