KeyCorp Gets Steady Target From KBW Despite Slight Dip in Investment Banking Growth

With a stable price target of $18, analyst David Konrad of Keefe, Bruyette & Woods kept his Outperform rating on KeyCorp (NYSE:KEY) on May 29. Chris Gorman, the chairman and CEO of KeyCorp, recently provided some thoughts that led to the endorsement.

KeyCorp Gets Steady Target From KBW Despite Slight Dip in Investment Banking Growth

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According to Gorman, the company’s investment banking performance is meeting projections, and it is expected that revenue from this sector might increase by 10% annually in the first half of 2025. This forecast somewhat lower than the 11% growth predicted by Keefe, Bruyette, and Woods, indicating a 14% quarter-over-quarter decline in investment banking fees for Q2 2025.

Of KeyCorp’s $74 billion C&I operation, Gorman estimated that only about $1.5 billion will be meaningfully impacted by tariffs. KeyCorp’s management also reaffirmed earlier estimates for net interest income, predicting a rise of more than 20% annually. This optimistic view reinforces KBW’s confidence in KeyCorp’s financial future as the second quarter of 2025 approaches.

While we acknowledge the potential of KEY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KEY and that has 100x upside potential, check out our report about the cheapest AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.