KeyCorp rated 'buy' with strong buyback and expected Q2 2026 earnings beat

KeyCorp is rated as a 'buy' due to its strong capital returns, favorable loan growth, and deposit management updates. The company announced a $3 billion buyback program, about 12% of its market cap, signaling undervaluation and a solid capital position. Analysts expect KeyCorp to outperform in Q2 2026 earnings, supporting a higher valuation multiple. This positive outlook is based on recent business updates and capital distribution plans.