Opinions
Stuart Hinshelwood
Keycorp
KEY-N
BUY
Jul 12, 2013
Stock price when the opinion was issued
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By and large US banks are quite cheap. There is still a holdover from 2008-2009 where there were some issues. The longer that time goes on, the longer interest rates stay low and the longer these companies get rid of and restructure their balance sheets, the better is their outlook. They all have good upside potential of 50%-70%. It is a question of when the market is going to be a little more relaxed about the stocks and freely buy and recommend them again.
Believes it is the 5th largest bank in the US. Has a nice dividend yield of 2.7%. Very strong in commercial lending as well as business lending, and works with consumers. Has very good relationship management with communities in the Midwest. It really makes sense to buy a company like this. There will be more integration and more acquisitions within banking.
KeyCorp's roots trace back 190 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $170.3 billion at December 31, 2020. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of more than 1,000 branches and approximately 1,400 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. Social media mentions are up 500% in the past 24h.
Likes the regional bank space. He is a big believer that the US is a country that is driven by small and medium-sized businesses, versus large corporations. This one has a great balance sheet and they have a management team that understands the business. Net interest margins and loan growth is what really drives regional banks. Looking out over the next several quarters, interest-rate margins are going to get better and there is an opportunity here for loan growth. $13-$14 over the next 12 months.