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Fly News Breaks for January 6, 2020
KEY
Jan 6, 2020 | 07:37 EDT
As previously reported, Wells Fargo analyst Mike Mayo downgraded KeyCorp to Underweight from Equal Weight with a $20 price target, given his view that the stock will underperform the banking industry over the next 12 months, consistent with his firm's new rating system. Strategically, KeyCorp maintains a disjointed franchise that has contributed to 25 years of stock underperformance and creates more issues today given the expansion of the "Goliaths" to its core markets, he contends. Financially, the analyst estimates below peer earnings growth ahead. A new CEO also seems to eliminate the chance for a major positive strategic move and can lead to a "free pass" this year as the new CEO repositions the firm, Mayo adds.