KeyCorp (NYSE:KEY) is among the 12 Best Very Cheap Stocks to Buy in 2026.
On March 2, Morgan Stanley raised the firm’s price target on KeyCorp (NYSE:KEY) to $26 from $24 while maintaining an Equal Weight rating on the shares. The firm said it is increasing price targets across the mid-cap banking group by a median of 8%. Although the bank group has recently outperformed the broader market—raising the bar for further upside—Morgan Stanley remains optimistic about the sector’s outlook. The firm cited several potential tailwinds, including stronger loan growth, expanding net interest margins, and continued capital return to shareholders.
On February 24, Robert W. Baird & Co. upgraded KeyCorp (NYSE:KEY) to Neutral from Underperform while keeping its price target unchanged at $19. The firm attributed the upgrade primarily to valuation after a recent selloff in regional bank stocks. According to the analyst, the sector declined amid fears about artificial intelligence potentially disrupting the banking industry, concerns that were amplified by a blog post over the weekend outlining potential macroeconomic stress scenarios. Baird argued that those projections—such as unemployment reaching 11% and severe credit deterioration tied to a weakening U.S. consumer—appear excessive. With shares trading around 1.5 times tangible book value, the firm believes the stock presents a balanced risk-reward profile. Additionally, Baird suggested that banks are more likely to benefit from AI adoption through efficiency gains rather than face meaningful disruption from the technology.
KeyCorp (NYSE:KEY) is a major U.S. regional bank headquartered in Cleveland, Ohio, with approximately $187 billion in assets as of late 2025. Operating primarily through its banking subsidiary KeyBank, the company serves customers across 15 states, offering consumer and commercial banking, mortgage lending, and investment services.
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: 12 Cheap Stocks That Will Go to the Moon According to Reddit and 10 Best Oil & Gas Drilling Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
