KeyCorp shares attractive, bank is undervalued: Barron's

NEW YORK Sun Jan 13, 2013 1:28pm EST

Related Topics

NEW YORK (Reuters) - KeyCorp's (KEY.N) shares may be a good bet as the company is trading at a discount to its book value, and has strengthened its balance sheet since the financial crisis, according to an article in Barron's.

The bank has "resilient earnings power without any visible obstacles," Morningstar analyst Maclovio Pina told the financial weekly in its January 14 edition.

The bank's shares trade at a 5 percent discount to its book value, which is below its peers, Barron's said. If the shares traded at 1.1 times their book value, they would be worth $11, which is 23 percent above its current price of $8.94, the paper said.

KeyCorp's capital levels and loan portfolio quality have improved and the bank had solid loan growth of 5 percent in the third quarter, Barron's said.

The bank may also receive approval from the Federal Reserve to increase dividend payments to shareholders and buy back more shares, the paper said.

(Reporting By Karen Brettell; Editing by Maureen Bavdek)


After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.