KeyCorp Shares Surge Following Upgrade from UBS

KeyCorp shares have risen after UBS upgraded the bank-based financial services company. KeyCorp operates through its subsidiary, KeyBank National Association, providing a range of retail and commercial banking, investment management, and other financial products and services to individual, corporate, and institutional clients. The company has two business segments: Consumer Bank and Commercial Bank.

KeyCorp (NYSE:KEY) shares have experienced a notable uptick following a significant upgrade from UBS Group. The brokerage firm raised its rating on KeyCorp from "neutral" to "buy" and increased its price target to $22.00, indicating a potential 20.15% upside from the company's current price [1].

The upgrade comes amidst a backdrop of strong capital momentum and potential net interest income surprises, as cited by UBS analyst Erika Najarian. Najarian noted that KeyCorp is well-positioned to achieve its 2025 commercial and industrial (C&I) loan growth target of $3 billion by the first half of the year, supported by a 10% increase in middle market bankers [2].

KeyCorp operates through its subsidiary, KeyBank National Association, offering a comprehensive suite of retail and commercial banking services, investment management, and other financial products to individual, corporate, and institutional clients. The company's two main business segments are Consumer Bank and Commercial Bank, catering to a diverse range of customer needs [1].

The upgrade by UBS aligns with the broader consensus among analysts, with twelve investment analysts rating the stock with a "hold" rating and ten issuing a "buy" rating. The company's average rating is "hold," with a consensus price target of $19.18 [1].

In addition to the upgrade, KeyCorp recently announced a share repurchase program authorizing the company to repurchase up to $1 billion in outstanding shares. The program, approved by the company's board, reflects management's belief in the stock's undervaluation [1].

KeyCorp's financial performance in the recent quarter was robust, with the company reporting earnings per share (EPS) of $0.33, beating the consensus estimate of $0.32. The company also posted a positive return on equity of 9.43% and a negative net margin of 0.12% [1].

Institutional investors have shown significant interest in KeyCorp, with major investors such as Arvest Investments Inc., Voya Investment Management LLC, and UBS Asset Management Americas LLC acquiring substantial stakes in the company [1].

References:
[1] https://www.marketbeat.com/instant-alerts/keycorp-nysekey-upgraded-at-ubs-group-2025-07-08/
[2] https://seekingalpha.com/news/4465890-keycorp-upgraded-to-buy-at-ubs-on-growing-momentum