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Cleveland, Ohio-based KeyCorp (KEY) operates as the holding company for KeyBank which provides various retail and commercial banking products and services. With a market cap of $17.8 billion, KeyCorp operates as one of the largest regional banking companies in the U.S.
KeyCorp has notably underperformed the broader market over the past year. KEY stock has gained 19.9% over the past 52 weeks compared to the S&P 500 Index’s ($SPX) 22.7% surge over the past year. However, in 2025, KEY stock has gained 4.9% outpacing SPX’s 2.7% returns during the same time frame.
Narrowing the focus, KEY has also underperformed the iShares U.S. Regional Banks ETF’s (IAT) 24.3% gains over the past year and 5.5% returns on a YTD basis.
KeyCorp’s stock prices dipped 3.6% after the release of its mixed Q4 results on Jan. 21. The company’s financials were adversely impacted due to the completion of its previously communicated securities portfolio repositioning. While its revenues declined 43.8% year-over-year to $865 million which missed the street’s topline expectations by a large margin, KeyCorp’s adjusted net income for the quarter increased 58.2% year-over-year to $378 million and its non-GAAP EPS of $0.38 surpassed the consensus estimates by 15.2%.
For the current fiscal 2025, ending in December, KeyCorp is expected to deliver a 31.9% year-over-year growth in adjusted earnings to $1.53 per share. While the company has surpassed the Street’s bottom-line expectations thrice over the past four quarters, it missed the consensus estimates on one other occasion.
Among the 20 analysts covering the KEY stock, the consensus rating is “Moderate Buy.” That’s based on eight “Strong Buy,” two “Moderate Buy,” and 10 “Hold” ratings.
This configuration is slightly more bullish than a month ago when seven analysts gave a “Strong Buy” rating.
On Jan. 22, RBC Capital analyst Gerard Cassidy maintained a “Buy” rating with a price target of $18, suggesting a marginal upside potential from current price levels.
While KEY’s mean price target of $19.89 represents a 10.6% premium to current price levels, its street-high target of $23 suggests a staggering 27.9% upside potential.
