Morgan Stanley Maintains a Hold on KeyCorp (KEY)

KeyCorp (NYSE:KEY) is one of the best affordable stocks to buy under $20. Morgan Stanley analyst Manan Gosalia maintained a Hold rating on KeyCorp (NYSE:KEY) on October 20, setting a $24 price target.

The analyst based the rating on the company’s strategic plans and financial outlook, stating that its return on tangible common equity (ROTCE) and net interest margin (NIM) targets are slightly ambitious in comparison to current estimates.

It added that while KeyCorp (NYSE:KEY) has a goal of a NIM of 3.25% by fiscal Q4 2027, current models are pointing towards a slightly lower number of around 3.15%. According to Gosalia, this discrepancy shows potential challenges in attaining the company’s desired financial metrics.

KeyCorp (NYSE:KEY) is a bank holding company that provides financial services. The company’s operations are divided into the Consumer Bank and Commercial Bank segments.

While we acknowledge the potential of KEY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.