Cracking The Code: Understanding Analyst Reviews For KeyCorp

In the preceding three months, 8 analysts have released ratings for KeyCorp KEY, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for KeyCorp, presenting an average target of $14.75, a high estimate of $17.00, and a low estimate of $12.00. This upward trend is evident, with the current average reflecting a 12.77% increase from the previous average price target of $13.08.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of KeyCorp by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to KeyCorp. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of KeyCorp compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for KeyCorp's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of KeyCorp's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on KeyCorp analyst ratings.

Delving into KeyCorp's Background

With assets of over $170 billion, Ohio-based KeyCorp's bank footprint spans 16 states, but it is predominantly concentrated in its two largest markets: Ohio and New York. KeyCorp is primarily focused on serving middle-market commercial clients through a hybrid community/corporate bank model.

KeyCorp: A Financial Overview

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, KeyCorp faced challenges, resulting in a decline of approximately -17.03% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: KeyCorp's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 17.57%, the company may face hurdles in effective cost management.

Return on Equity (ROE): KeyCorp's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.41%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.14%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: KeyCorp's debt-to-equity ratio stands notably higher than the industry average, reaching 2.28. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.