-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by $1 to $24, 10.9x our 2027 EPS estimate, a premium to KEY's five-year forward P/E average of 10.7x given healthy investment banking expectations and a rising net interest margin. We raise our 2026 EPS by $0.03 to $1.87 and increase 2027's by $0.06 to $2.20. Our revenue projections are $8.1 billion and $8.6 billion, respectively. While macroeconomic conditions remain uncertain, KEY's credit quality is improving across both forward-looking and historical metrics. The regulatory outlook is also favorable, with KEY expecting the proposed Basel III revisions to boost its CET1 ratio by over 100 bps. This, combined with an above-average CET1 ratio of 11.4% in Q1, positions KEY well to increase share repurchases. However, despite net interest margin expansion (+5 bps Q/Q, +29 bps Y/Y), we remain doubtful about KEY's ability to sustain long-term growth. Notably, the bank's 1% sequential loan growth was offset by a 2% decline in deposits.