Nomura Securities Starts KeyCorp (KEY) at Neutral

Nomura Securities initiates coverage on KeyCorp (NYSE: KEY) with a Neutral rating and a price target of $14.00.

Analyst Bill Carcache comments, "Relatively new management has helped KEY regain its footing. Examples of the positive post-crisis momentum that KEY is enjoying include meaningful decreases in deposit funding costs, strong fee income generation (KEY has the third highest level of exposure to fee income behind WFC and USB), solid asset quality (KEY has the second lowest level of net charge-offs in the industry below CMA), and industry-leading capital return (KEY’s 82% expected payout ratio under CCAR is the highest among banks that we cover). Despite the positive momentum, we believe the risks to owning KEY shares in the current environment are in balance with the rewards and are initiating coverage with a Neutral rating and a $14 target price, which implies 1.2x our estimate of 2015 TBVPS $11.38 and 12.4x our estimate of 2015 EPS of $1.13."

For an analyst ratings summary and ratings history on KeyCorp click here. For more ratings news on KeyCorp click here.

Shares of KeyCorp closed at $13.81 yesterday.

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