Morgan Stanley Maintains a Hold on KeyCorp (KEY)

KeyCorp (NYSE:KEY) is one of the best affordable stocks to buy under $20. Morgan Stanley analyst Manan Gosalia maintained a Hold rating on KeyCorp (NYSE:KEY) on October 20, setting a $24 price target.

KeyCorp’s (KEY) Dividend History: What Makes It Stand Out Under $20

The analyst based the rating on the company’s strategic plans and financial outlook, stating that its return on tangible common equity (ROTCE) and net interest margin (NIM) targets are slightly ambitious in comparison to current estimates.

It added that while KeyCorp (NYSE:KEY) has a goal of a NIM of 3.25% by fiscal Q4 2027, current models are pointing towards a slightly lower number of around 3.15%. According to Gosalia, this discrepancy shows potential challenges in attaining the company’s desired financial metrics.

KeyCorp (NYSE:KEY) is a bank holding company that provides financial services. The company’s operations are divided into the Consumer Bank and Commercial Bank segments.

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 this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.