Truist Maintains Hold Recommendation on KeyCorp (KEY)

KeyCorp (NYSE:KEY) is one of the new stocks David Tepper has bought. As of December 29, the average price target for KEY suggests an upside of 4%; however, the Street high indicates an upside of 18%. As of Q3 2025, Tepper owns a $37.75 million stake in KeyCorp, which is a new addition to the billionaire’s stock portfolio.

On December 22, Truist analyst Brian Foran assigned a Hold recommendation on KeyCorp as part of a wider research note on banks, and boosted the target price from $19 to $22.

Previously, on December 9, KeyCorp CEO Chris Gorman said that the bank is not in the market for acquisitions and will focus on share repurchases instead. He noted that although the industry appears to be undergoing M&A activity, hinting at the Comerica-Fifth Third Bank merger, KeyCorp is not currently participating. The activist investor, HoldCo Asset Management, also signaled KeyCorp days before the CEO’s remarks to steer clear of bank acquisitions. About HoldCo’s report, Gorman commented:

"We’re still digesting it ... we’re looking at all the content in there. Most important theme is a moratorium on doing bank deals. I think we’re perfectly aligned on that."

Regarding the bank’s share buyback plan, Gorman said:

"We’re going to spend time buying KeyCorp stock. We are an undervalued stock, we believe that strongly and we’re going to spend our capital buying our stock,"

KeyCorp (NYSE:KEY) is an Ohio-based bank holding company for KeyBank, offering retail and commercial banking services.

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