UPDATE: BMO Capital Markets Upgrades KeyCorp to Outperform, Raises PT on Multiple Positive Factors

In a report published Wednesday, BMO Capital Markets analyst Peter J. Winter upgraded the rating on

from Market Perform to Outperform, and raised the price target from $10.00 to $13.00. In the report, BMO Capital Markets noted, “In our view, KEY has finally gone back on the offensive after playing defense for several years. Also of note, KEY's balance sheet is better positioned for rising interest rates than its asset sensitivity analysis indicates. KEY is leveraged to a sustainable economic recovery. We think that its efficiency initiative will finally start benefitting the bottom line in 2H13. Unlike most of its peers, KEY faces no revenue headwinds from the expected slowdown in mortgage banking. Finally, its best-in-class capital ratios will allow it to return substantial amounts of capital to shareholders.” KeyCorp closed on Tuesday at $10.72.