KeyCorp Stock 12‑Month Price Target Cut to $24.11, Implies 20% Upside

KeyCorp reported improving credit quality and plans at least $1.3B in share buybacks. The CET1 ratio may dip below 9.5%. The Clearwater deal is expected to add $60–70M in revenue next year. KeyCorp maintains its 2026 outlook with loan growth of 4–5% and deposit growth of over 2% in H2.

KeyCorp (NYSE: KEY) expects average client deposits to rise over 2% in the second half of 2024, with deposit costs increasing only slightly. The company reported a 2.89% net interest margin in Q2 and targets 3% to 3.05% in the near term, aiming for 3.25% or more in 2025. KeyCorp updated its fee-income growth outlook to 4% to 5% and increased its expense outlook to about 4% following the Clearwater acquisition. The bank sees growth in payments and wealth management, with payments platforms showin

Major U.S. banks, including JPMorgan, Bank of America, and others, raised their prime lending rate to 7% after the Federal Reserve's quarter-point rate hike. The move increases borrowing costs for consumers and businesses. Bank stocks fell, with BofA down 2.7%, Citi 2.4%, and JPMorgan 1%. Rate hikes may boost bank earnings but could also slow economic activity and impact credit quality.

Top U.S. banks, including JPMorgan and Bank of America, raised their prime lending rate to 7% after the Federal Reserve's first rate hike since 2023. The Fed increased rates by 0.25% and signaled further hikes, aiming to combat inflation. Bank shares fell, with JPMorgan down 1% and Goldman Sachs down 4%. Higher rates boost bank earnings but may slow economic activity and reduce loan demand.

KeyCorp (KEY) raised its 2026 revenue outlook to 8% growth, up from 7-8%, citing strong loan growth, fee-based business momentum, and the Clearwater acquisition. Non-interest income is now expected to grow 4-5%, with adjusted non-interest income projected to increase 6-7%. The company also affirmed a 20%+ sequential rise in third-quarter investment-banking fees. KeyCorp anticipates 4-5% average loan growth and 9-11% net interest income growth for 2026, supported by solid loan demand and deposit

KEYCORP /NEW/ (KEY) filed an SEC Form 8-K — Regulation FD Disclosure. KeyCorp Barclays Global Financial Services Conference September 14, 2026 Clark Khayat Chief Financial Officer $ in millions, unless otherwise stated FY2026 (vs. FY2025) On an operating basis Revenue(1),(2) (FY25 baseline: $7,513) up ~8% (previously up 7 – 8%) Net interest income(