UPDATE: Citi Initiates Coverage on Comerica and KeyCorp

According to a research report published earlier today, Citi has initiated Comerica

with a Sell rating, and KeyCorp

with a Buy rating. In the report, Citi commented, “We're initiating coverage on FNFG, HBAN, NYB, RF, SIVB, STI and ZION and we're assuming coverage from Keith Horowitz of CMA, FHN and KEY. We rate CMA as a Sell as our analysis suggests that CMA will have one of the widest gaps in our coverage universe between its ROE and cost of equity over the next two years. We rate NYB a Sell as we think that its dividend is at greater risk of being cut than what the stock is currently pricing in given the company's (1) high payout ratio and (2) declining TE/TA ratio. Our Buy rating on KEY is a straightforward valuation call.” Citi maintains its $29 PT on Comerica, and raises KeyCorp's PT from $8 to $10. Comerica closed yesterday at $32.02. KeyCorp closed yesterday at $8.28.