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Janney Capital Markets Cuts KeyCorp Targets Ahead of Earnings

KeyCorp (NYSE: KEY) may be a top bank for safety of assets, but at least one firm has tempered some of its earnings expectations ahead of the super-regional bank’s earnings estimates. Janney Capital Markets lowered its estimates and lowered its fair value estimate.

While Janney’s report maintained its Buy rating, the fair value estimate was lowered to $17.00 from $18.00 versus a prior closing price of $13.06. Janney’s Sameer Gokhale lowered the bank’s 2015 and 2016 earnings per share (EPS) estimates to $1.08 from $1.10 in 2015 and to $1.15 from $1.22 in 2016.

It turns out that the lack of an expected rate hike and loss provisions impacting net interest margins (NIM) may be the harmful factors here. Sameer Gokhale said:

In the absence of a rate increase...