Regional bank stocks could outperform if these three catalysts land: BofA
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 28 2025
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Source: SeekingAlpha
Regional Banking Performance: U.S. regional banking stocks have underperformed compared to larger banks and the broader market, with a 2.9% decline since the start of the year, while large-cap peers rose by 9.1%. Analysts suggest potential catalysts such as Federal Reserve interest rate cuts and positive macroeconomic indicators could improve their outlook.
Investment Opportunities and Risks: Certain regional banks like KeyCorp and Truist are highlighted as having attractive risk-reward profiles. However, concerns about fiscal risks and U.S. debt overshadow these opportunities, leading to a cautious outlook among some analysts.
Analyst Views on KEY
Wall Street analysts forecast KEY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KEY is 23.00 USD with a low forecast of 18.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
8 Buy
5 Hold
1 Sell
Moderate Buy
Current: 21.570
Low
18.00
Averages
23.00
High
25.00
Current: 21.570
Low
18.00
Averages
23.00
High
25.00
About KEY
KeyCorp is a bank-based financial services company, which operates through its subsidiary, KeyBank National Association (KeyBank). Through KeyBank and certain other subsidiaries, it provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance, student loan refinancing, commercial mortgage servicing and special servicing, and investment banking products and services to individual, corporate, and institutional clients. Its segment includes Consumer Bank and Commercial Bank. The Consumer Bank serves individuals and small businesses by offering a variety of deposit and investment products, personal finance and financial wellness services, lending, student loan refinancing, mortgage and home equity, credit card, treasury services, and others. The Commercial Bank consists of the Commercial and Institutional operating segments. The Commercial operating segment is focused on serving the borrowing, cash management, and capital markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
