Sterne Agee Reiterates Neutral on KeyCorp on 1Q13 Earnings

In a report published Friday, Sterne Agee analyst Todd L. Hagerman reiterated a Neutral rating and $11.00 price target on KeyCorp

. In the report, Hagerman noted, “While KEY's fundamentals held up better than expected, mgmt's outlook was a bit disappointing. KEY's tempered outlook for the pace of expense saves, and importantly, bottom-line impact fell short of rather lofty expectations. Moreover, questions surrounding the strength of loan growth, pricing pressure, and margin compression raised the caution flag. Not expensive, but more progress is needed on the profitability front to get more aggressive on the shares at current levels in our view.” KeyCorp closed on Thursday at $9.83.