KeyCorp (NYSE:KEY) – This is one of the largest bank-based financial services companies in theUnited States with assets of $89 billion. After doing well in the second round of “stress tests,” the bank announced a $625 million equity capital raise and a payback of its $2.5 billion in TARP funds, which saved at least $125 million in preferred dividend payments.
KEY reported earnings of 47 cents in 2010 and 92 cents in 2011, and S&P expects them to report 82 cents in 2012 and 85 cents in 2013. At a P/E of 1.12 times earnings, S&P’s price target is $11.
Technically KEY broke to a bull market on Dec. 20 at $7.37 and established a bull channel that, upon breaking a double-top at $8.50, should continue to its trading target of $9.50.