UPDATE: J.P. Morgan Raises PT on KeyCorp to $8.50

J.P. Morgan is out with its report today on KeyCorp (NYSE: KEY), raising its PT from $8 to $8.50.

In its report, J.P. Morgan writes, "KEY shares trade at 0.75x TBV, or a 40% discount to peers. Although our estimates remain relatively unchanged post the quarter, with the company realizing a potential anchor on loan balances, and given our outlook for loan balances to grow from the 3Q level, we believe this will remove an overhang from the stock and are bumping up our target from $8 to $8.50. Our target implies the shares trade at 0.9x YE12 expected TBV of $9.86, or that they maintain their current ~40% discount to peers. With 25% potential upside to our YE12 target of $8.50, we remain Overweight on the shares."

At the time of posting, shares of KEY were trading at $6.96, up 2.20% from Thursday's close.