RBC Capital analyst Gerard Cassidy raised the price target on KeyCorp (NYSE: KEY) to $24.00 (from $22.00) while maintaining a Outperform rating.

The analyst comments "BNS' investment in 2024 has provided KEY the flexibility to restructure its bond portfolio while still enabling KEY to report excess capital. In 2026, we expect KEY will have optionality on how best to leverage its capital with adroit balance-sheet management and stock-buybacks. The restructuring of its balance sheet led to 23% growth in its net interest income in 2025. Growth in 2026 should land in the high single-digits, as its net interest margin expands, along with some modest balance sheet growth. Also, KEY's credit quality is strong and should perform very well over the next 12-18 months. We increased our price target to $24 from $22."