10 Best Banking Stocks to Buy According to Hedge Funds

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7. KeyCorp (NYSE:KEY)

Number of Hedge Fund Holders: 48

KeyCorp (NYSE:KEY) is one of the 10 best banking stocks to buy according to hedge funds.

On January 26, Truist analyst Brian Foran reaffirmed his Hold rating for KeyCorp (NYSE:KEY). The analyst increased the stock’s price target from $22 to $23, resulting in a revised upside potential above 9%.

Foran’s revision followed the company’s fourth-quarter results announcement. The upward adjustment is driven by expectations for higher FY26 net interest income and a projected boost to the annual buyback amount, now estimated at $1.3 billion.

Later, on February 5, the price target for KeyCorp (NYSE:KEY) was increased from $25 to $26 by Evercore ISI analyst John Pancari. The analyst maintained his Outperform rating on the stock, with a revised upside potential of almost 24% at the current level. Pancari’s adjustments came after the company’s fourth quarter report, which led him to revise his EPS forecasts as well.

KeyCorp (NYSE:KEY) offers retail and commercial banking solutions. Some of these include commercial leasing, investment management, consumer & personal finance, student loan refinancing, and mortgage and home equity products. It also delivers wealth & investment advisory products and services targeted towards institutions, and high-net-worth clients.

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