Overview of KeyCorp's Stock Update#
Evercore ISI has raised its price target for KeyCorp stock (NYSE:KEY) from $24 to $26, while keeping an Outperform rating. Currently, KeyCorp's stock is trading at $22.19, and the company has a market capitalization of $23.7 billion.
Earnings Estimates Revised#
Following the release of KeyCorp's first-quarter 2026 earnings, Evercore ISI has updated its earnings estimates. The firm now anticipates earnings per share (EPS) of $1.81 for 2026 and $2.22 for 2027, up from previous estimates of $1.78 and $2.13. This increase is attributed to higher net revenue before provisions (the money made before accounting for potential loan losses), primarily driven by increased net interest income, although slightly lower fees have offset some of this gain.
Dividend and Share Repurchase Plans#
KeyCorp has a strong history of dividend payments, having maintained them for 55 consecutive years, currently offering a yield of 3.76%. Evercore ISI also predicts that the bank will conduct $1.3 billion in share repurchases in fiscal year 2026, which can enhance shareholder value by reducing the number of shares outstanding.
Market Reactions and Analyst Ratings#
In its recent earnings report, KeyCorp exceeded Wall Street expectations with an EPS of $0.44, surpassing the forecast of $0.42. The bank's revenue also exceeded predictions, reaching $1.95 billion against an anticipated $1.94 billion. Despite these strong results, the stock saw a decline in pre-market trading. Analysts have responded positively, with BofA Securities raising its price target to $25, Jefferies to $23, and RBC Capital to $24, all citing strong loan growth and solid earnings performance. D.A. Davidson reiterated a Buy rating with a $26 target, highlighting KeyCorp's promising earnings growth outlook.