UPDATE: Sterne Agee Reiterates Neutral Rating, Raises PT on KeyCorp

In a report published Monday, Sterne Agee reiterated its Neutral rating on KeyCorp

, and slightly raised its price target from $9.00 to $10.00. Sterne Agee noted, “Waning credit leverage, negative operating leverage, and a challenging 1H13 outlook effectively took the wind out of KEY's sails. Moreover, heavy investment spend, particularly ongoing tech investments and a challenging revenue environment, will undoubtedly challenge management to hit its targeted efficiency goal of 60-65% by early '14. While not expensive, more progress is needed on the profitability front to get more aggressive on the shares at current levels in our view. Neutral.” KeyCorp closed on Friday at $9.29.