Baird Raises KeyCorp to Neutral at $19; Q4 EPS $0.43 and $200M Buyback
On Feb 24, Baird upgraded KeyCorp to Neutral from Underperform with a $19 price target, noting shares trade at 1.5-times tangible book value after a regional bank selloff. In Q4 2025, KeyCorp reported $0.43 EPS on over $2B revenue, repurchased $200M of stock and plans $300M in Q1 2026 buybacks.
1. Baird Upgrade
On February 24, Baird upgraded KeyCorp to Neutral from Underperform, maintaining a $19 price target; the bank’s shares trade at roughly 1.5-times tangible book value following a regional bank selloff tied to AI concerns. Baird highlighted a balanced risk/reward profile at current valuation levels.
2. Q4 Results and Buybacks
In Q4 2025, KeyCorp posted earnings of $0.43 per share on revenue exceeding $2 billion, up 12% year-over-year, while expenses rose only 2%. The company repurchased $200 million of common stock—double its initial plan—and plans at least $300 million in buybacks in Q1 2026.
3. Strategic Initiatives and Outlook
KeyCorp expanded its frontline banker workforce by nearly 10% and invested $100 million in technology to enhance customer experience, launching a mass affluent wealth platform that added 54,000 households since 2023. The board nominated two new directors and will appoint a new lead independent director in the coming quarter.