KeyCorp Price Target Cut to $22, Q1 Loans Seen at $2.0B; BNS Hikes Stake
Truist cut its price target for KeyCorp to $22 from $23 while lifting its 2026 EPS forecast to $1.85 and boosting loan growth estimates to 5% after projecting first-quarter loans rising by $2.0 billion. Separately, Bank of Nova Scotia will raise its KeyCorp stake to 19.99%, deepening its U.S. partnership.
1. Price Target Cut and Earnings Upgrades
Truist lowered KeyCorp's price target to $22 from $23 and raised its 2026 EPS estimate to $1.85 and 2027 EPS to $2.20, using a 10x multiple on 2027 earnings to reflect elevated macroeconomic and geopolitical risks.
2. First-Quarter Loan Growth Trends
KeyCorp is projected to add approximately $2.0 billion in total loans during the first quarter, including $2.7 billion in commercial and industrial loans, prompting Truist to lift its year-end loan growth forecast to 5% from 3%.
3. Bank of Nova Scotia Stake Increase
Bank of Nova Scotia plans to increase its ownership stake in KeyCorp to 19.99%, strengthening its U.S. presence while maintaining a minority partnership structure.