Goldman Sachs Resumes KeyCorp (KEY) at Neutral

Goldman Sachs resumes coverage on KeyCorp (NYSE: KEY) with a Neutral. PT $8.75.

The firm said the high-cost CD re-pricing opportunity is a significant NIM tailwind for KeyCorp. With the highest-cost CD book of the regionals they coverage, and approximately $2.5 billion of "high-cost" pre-2009 CDs set to mature in 2012 the CD re-pricing opportunity for KEY is very significant, especially over 2H12-2013. Goldman thinks the company can grow its NIM by 6 bp in 2012. That said, low leverage of capital and deposits is a longer-term drag on returns.

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 $8.02 yesterday.

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