Jim Cramer -- KeyCorp Has Upside on Multiple Rate Hike Potential

Shares of KeyCorp (KEY) are down 1.75% on Monday, following a downgrade from analysts at Deutsche Bank, who do not like the company's recent acquisition of First Niagara (FNFG) for $4.1 billion.

Shares are now down 9.75% over the past six months. 

This might be a good time to buy KeyCorp, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment. 

KEY Chart
KEY data by YCharts

"I think there's going to be multiple rate hikes," Cramer said, adding that investors will likely be surprised by how quickly the Federal Reserve will have to raise rates once it gets the first boost out of the way. 

Rising interest rates bode well for financial stocks, and in particular, regional banks. This group of stocks still has upside from current levels, he concluded. 

 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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