On Friday, Piper Sandler confirmed its overweight rating on KeyCorp (NYSE:NYSE:KEY) stock, with a steady price target of $17.00. The financial firm's positive stance on the bank holding company follows a recent meeting in Cleveland with KeyCorp's senior management and institutional investors.
During the meeting, it was noted that KeyCorp's customers are currently in good financial health, although borrowing is not being pursued aggressively.
The analysts at Piper Sandler observed that KeyCorp's management is confident about the net interest income (NII) progression, even under various economic scenarios.
Furthermore, the company is experiencing a moderation in deposit pressures. The analysts also highlighted KeyCorp's advantageous position in anticipation of the investment banking sector's recovery.
KeyCorp's strategic de-risking efforts were also discussed, which are showing positive results in terms of credit performance. With the company's shares trading at approximately 9 times Piper Sandler's estimated earnings per share for 2025, the firm reiterated its confidence in the value of the stock.
The meeting earlier in the week provided an opportunity for investors to gauge the financial health of KeyCorp directly from the company's leadership.
The insights shared by senior management have reinforced Piper Sandler's assessment of KeyCorp's stock as a compelling investment opportunity. The firm's rating indicates a bullish outlook on the stock's future performance.
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