Will KeyCorp (KEY) Stock Get a Boost From Morgan Stanley Upgrade?

KeyCorp (KEY) stock is dropping on Tuesday afternoon despite Morgan Stanley raising its rating on shares to ‘overweight’ from ‘equal weight.’
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of KeyCorp (KEY) - Get Report are down 2.46% to $10.69 midday Tuesday even though Morgan Stanley upgraded the stock to "overweight" from "equal weight," the Fly reports.

The firm has a $15 price target on shares of the Cleveland-based bank holding company.

The higher rating comes after Morgan Stanley recently met with the company's management. The firm came away with increased confidence that KeyCorp will achieve its goal of $400 million in expense savings, and possibly more as it integrates its merger with First Niagara.

Morgan Stanley forecasts more than 200bps of ROTCE improvement through 2018, combined with rising earnings growth, making valuation too low to disregard, according to the Fly.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and attractive valuation levels. 

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: KEY

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