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Nomura Securities Starts KeyCorp (KEY) at Neutral

February 6, 2013 8:24 AM EST Send to a Friend
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Price: $13.96 -1.2%

Rating Summary:
    10 Buy, 16 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 24 | New: 21
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Nomura Securities initiates coverage on KeyCorp (NYSE: KEY) with a Neutral. PT $10.00.

Analyst Keith Murray comments, "We think KeyCorp is building for better long-term returns and deserves credit for solid loan growth; better NIM stability than most peers; and a peer-group best 10.2% Basel III T1C ratio. However, KEY’s credit costs are already at “normalized” levels and expenses remain elevated, so near term EPS likely will not benefit from these levers. In 4Q12, KEY’s ending loans were up 2.7% QoQ versus the peer group average of 1.8%, and its C&I loans were up 6%. We expect loan growth to once again be solid in 2013, and have baked in 6% growth in end of period loans. This growth should help to offset NIM pressure and allow NII to grow. We think KEY could remain a “show me” story on expenses until at least the second half of 2013. FY13E EPS at $0.82; FY14E EPS at $0.95."

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 $9.49 yesterday.




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