NEW YORK (TheStreet) -- KeyCorp (KEY) shares are falling, down -3.1% to $13.38, after having coverage initiated with a "neutral" rating by analysts at Nomura (NMR).
The firm set a price target of $14 for the financial services company.
The bank's stock opened at $13.78 on Wednesday while analysts' average price target for the shares is $14.92.
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TheStreet Ratings team rates KEYCORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KEYCORP (KEY) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 31.20% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KEY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- KEYCORP has improved earnings per share by 23.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, KEYCORP increased its bottom line by earning $0.93 versus $0.85 in the prior year. This year, the market expects an improvement in earnings ($1.06 versus $0.93).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 18.6% when compared to the same quarter one year prior, going from $204.00 million to $242.00 million.
- The gross profit margin for KEYCORP is currently very high, coming in at 93.15%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.72% is above that of the industry average.
- Net operating cash flow has significantly increased by 114.53% to $156.00 million when compared to the same quarter last year. In addition, KEYCORP has also vastly surpassed the industry average cash flow growth rate of -26.36%.
- You can view the full analysis from the report here: KEY Ratings Report