Deutsche Bank Adjusts Recommendations On Two Financial Stocks

On October 17, Deutsche Bank analysts adjusted the investment recommendations on two financial stocks:

KeyCorp KEY upgraded to Buy from Hold; maintained $14.50 price target.
PNC Financial Services Group PNC downgraded to Hold from Buy; lowered price target from $94 to $87.

Matt O’Connor expects a meaningful rebound in fourth quarter earning for KeyCorp, and feels that KeyCorp’s valuation looks attractive based on book value.

On the other hand, the firm’s Buy rating on PNC was driven by the idea that it would be more defensive as earnings risk was below peers due to credit leverage, but this aspect has already played out.

Moving on, O’Connor declared that Bank of America (BAC) remains the firms to pick, while KEY and RF offer upside as well.