Barclays Maintains an 'Underweight' on KeyCorp (KEY); 1Q11 EPS Preview: Out of TARP but Growth Remains a Challenge
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Price: $21.85 -1.13%
Rating Summary:
22 Buy, 16 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
22 Buy, 16 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Underweight' on KeyCorp (NYSE: KEY), PT $9.
Barclays analyst says, "KeyCorp's recent return to profitability (three straight quarters) and strong earnings growth have been primarily reserve release driven, as credit quality continues to improve. While its 4Q10 reported ROA of 1.53% and ROE of 13.71% appear fairly robust, excluding one-time items and using a 0.60% provision/loan ratio puts its ROA and ROE closer to 0.85% and 7%, respectively. With its exit portfolio/discontinued ops equaling 15% of earning assets (24% of loans) and securities at 29% of earning assets (up from 11% just 6 quarters ago), coupled with an expectation of net interest margin pressure, it could have difficultly improving these core metrics near term. Still, we are encouraged by its recent TARP ($2.5B) repayment and modest dividend increase...We expect KEY to report 1Q11 EPS of $0.17 versus the $0.15 consensus."
For more ratings news on KeyCorp click here and for the rating history of KeyCorp click here.
Shares of KeyCorp closed at $8.93 yesterday.
Barclays analyst says, "KeyCorp's recent return to profitability (three straight quarters) and strong earnings growth have been primarily reserve release driven, as credit quality continues to improve. While its 4Q10 reported ROA of 1.53% and ROE of 13.71% appear fairly robust, excluding one-time items and using a 0.60% provision/loan ratio puts its ROA and ROE closer to 0.85% and 7%, respectively. With its exit portfolio/discontinued ops equaling 15% of earning assets (24% of loans) and securities at 29% of earning assets (up from 11% just 6 quarters ago), coupled with an expectation of net interest margin pressure, it could have difficultly improving these core metrics near term. Still, we are encouraged by its recent TARP ($2.5B) repayment and modest dividend increase...We expect KEY to report 1Q11 EPS of $0.17 versus the $0.15 consensus."
For more ratings news on KeyCorp click here and for the rating history of KeyCorp click here.
Shares of KeyCorp closed at $8.93 yesterday.
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