Jefferies Cuts Price Target on KeyCorp (KEY) Following 2Q Report; Reiterates Buy

Jefferies maintained a Buy rating on KeyCorp (NYSE: KEY), and cut the price target to $14.00 (from $14.50), following the company's 2Q earnings report. While NII missed in 2Q, strong period-end loan growth (+2.3%) and the resetting of unusually low 2Q loan fees should generate growth in 3Q. KEY provisioned $52mm for $43mm of NCOs in 2Q, lower than expected, but with gross recoveries up ~$7mm Q-Q.

Analyst Ken Usdin commented, "NII missed, but strong loan growth helps the 3Q start. Fee income was low in IB, but other lines looked good, offsetting in our out-year fee est. Expenses looked good on most lines and credit was solid. Mgmt. expects an 8/1 close for FNFG (reports 7/29) and continues to sound confident on deal metrics. We reduced our '16 and '17 EPS ests. to $1.06 and $1.30, respectively (PT to $14)."

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 $11.61 yesterday.

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