Jefferies Lowers Price Target on KeyCorp (KEY), Earnings Power Problems
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Price: $21.85 --0%
Rating Summary:
22 Buy, 16 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
22 Buy, 16 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Jefferies is maintaining its Hold rating on shares of KeyCorp (NYSE: KEY), but is lowering its price target by $0.50 to $9.50.
The firm comments that credit quality and expense management continue to improve at KeyCorp, while revenue production, particularly in NII, remains a huge concern for the company and brings skepticism.
Jefferies is lowering its 2011 and 2012 EPS estimates by $0.05 to $0.75 and $0.80 to reflect a smaller earning asset base and lower loan growth expectations. The firm notes that lower provision expense helps offset the
headwinds in 2011, but still expects slightly weaker core earnings power in outer-years.
The firm reports, "While C&I pipelines appear to be building, the turn in absolute loan growth could be more distant than hoped (total loans declined 3.1% Q-Q). We expect C&I loans will increase in 2Q11, but run off portfolios ($11.4B or 21% of total loans) will continue to drive total loan declines throughout 2011."
For more ratings news on KeyCorp click here and for the rating history of KeyCorp click here.
Shares of KeyCorp closed at $8.59 yesterday.
The firm comments that credit quality and expense management continue to improve at KeyCorp, while revenue production, particularly in NII, remains a huge concern for the company and brings skepticism.
Jefferies is lowering its 2011 and 2012 EPS estimates by $0.05 to $0.75 and $0.80 to reflect a smaller earning asset base and lower loan growth expectations. The firm notes that lower provision expense helps offset the
headwinds in 2011, but still expects slightly weaker core earnings power in outer-years.
The firm reports, "While C&I pipelines appear to be building, the turn in absolute loan growth could be more distant than hoped (total loans declined 3.1% Q-Q). We expect C&I loans will increase in 2Q11, but run off portfolios ($11.4B or 21% of total loans) will continue to drive total loan declines throughout 2011."
For more ratings news on KeyCorp click here and for the rating history of KeyCorp click here.
Shares of KeyCorp closed at $8.59 yesterday.
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