Citi upgrades KeyCorp to 'buy' on valuation

Citi Research upgrades U.S. regional lender KeyCorp KEY.N to "buy" from "neutral" on attractive valuation and solid fundamentals following the recent pullback across the banking sector

Brokerage says with credit concerns mounting amidst recently elevated worries of a weakening macro backdrop, KEY should be a safe haven due to below average credit risk

KEY has the lowest consumer exposure within Citi's bank coverage universe, which the brokerage believes should limit market fears from a potentially softening macroeconomic conditions

Citi maintains $20 PT on KEY, a 27% upside to stock's last close

Ten of 23 brokerages rate the stock "buy" or higher and 13 "hold"; median PT is $20 — LSEG data

KEY stock down 12% YTD