KeyCorp: Q1 Validates The Earnings Growth Thesis

Seeking Profits5.39K FollowersFollow5ShareSavePlay(9min)CommentsSummaryKeyCorp remains a 'Buy' after a strong Q1, with clear earnings growth and a robust capital position.KEY's margin expansion is driven by aggressive deposit repricing, loan mix shift, and fixed-rate reinvestment tailwinds.Credit quality is well-insulated with 2.56x NPL coverage and prudent private credit structuring.I target $1.85–$1.95 EPS and a $23 price, implying a ~9%–10% total return including a secure 3.8% dividend. bgwalker/iStock Unreleased via Getty Images Shares of KeyCorp (KEY) have been a strong performer over the past year, gaining about 50%. The stock has been a bit more volatile over the past two months, given uncertainty about the war in Iran and private credit losses. Key has positionedThis article was written bySeeking Profits5.39K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.