DA Davidson has increased its price target for KeyCorp (KEY) to $23 from $21, reflecting improved confidence in the regional bank’s near-term performance and earnings trajectory. The move underscores growing investor interest in select financial institutions amid stable credit conditions and modest rate expectations.
- Price target for KeyCorp (KEY) raised to $23 from $21 by DA Davidson
- 9.5% upside potential based on the $2 increase
- Third-quarter EPS of $0.87 exceeded estimates by $0.04
- Forward P/E ratio of 10.2x, below S&P 500 average
- Upgrade driven by loan portfolio resilience and capital discipline
- No change in investment rating accompanying the price target revision
KeyCorp (KEY) has received a price target upgrade from DA Davidson, which raised its valuation estimate to $23 per share from $21. The adjustment, announced on December 11, 2025, signals a modest but meaningful shift in analyst sentiment toward the Cleveland-based bank. The firm cited resilience in KeyCorp’s loan portfolio, consistent net interest margin performance, and a disciplined approach to capital allocation as key drivers behind the revised outlook. The $2 increase represents a 9.5% upside from KeyCorp’s current trading price, positioning the stock as a relative value play within the regional banking sector. While the move is not accompanied by a change in investment rating, it suggests that DA Davidson sees favorable fundamentals supporting potential share appreciation over the next 12 months. The upgrade comes at a time when regional banks are navigating mixed macroeconomic signals, including moderate inflation and a cautious Federal Reserve stance. KeyCorp’s stock trades at a forward price-to-earnings ratio of approximately 10.2x, below the S&P 500 average, which may bolster the attractiveness of the stock to value-oriented investors. The bank reported third-quarter earnings of $0.87 per share, exceeding expectations by $0.04, and has maintained a conservative loan loss provision despite rising credit concerns in certain sectors. Market participants, particularly institutional investors focused on financials, are likely to monitor the stock closely for signs of momentum. The upgrade may influence trading activity and attract additional analyst follow-up, especially if KeyCorp delivers strong fourth-quarter results. However, the overall impact remains contained to the single stock level, with no broader sector-wide implications suggested by the update.