In a report released yesterday, Dominick Gabriele from Oppenheimer maintained a Buy rating on Ally Financial (NYSE: ALLY), with a price target of $32. The company’s shares closed yesterday at $25.01.
Gabriele commented:
“Ally reported “core” $0.92 vs. our/Street $0.84/0$.81E. There were ~$0.08 of tax/gain benefits, thus strong fundamental results that gave management confidence to raise near-term 2018FY guidance . We see ~20% EPS growth in 19FY/20FY while Ally is currently trading at just 5.8x our 2020 estimate of $4.34. We see NIM stabilization/ expansion and continued solid credit trends in ’19/’20 and thus think it is likely that consensus estimates will be revised higher. We see the mix in used from new auto originations as a key reason for NIM improvement even while growing the mortgage book at ~30% YoY (lower yielding). ALLY is growing loans/capturing higher yields with minimal incremental credit risk, thus we continue to recommend this as the recipe for long-term continued better risk-adjusted returns.”
According to TipRanks.com, Gabriele is a 1-star analyst with an average return of -1.0% and a 25.0% success rate. Gabriele covers the Financial sector, focusing on stocks such as Capital One Financial, Synchrony Financial, and American Express.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Ally Financial with a $32.75 average price target.
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The company has a one-year high of $31.29 and a one-year low of $23.69. Currently, Ally Financial has an average volume of 3.11M.
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Ally Financial, Inc. is a holding company, which provides digital financial services to consumers, businesses, automotive dealers, and corporate clients. It operates through the following segments: Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations.
