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Sep 2, 8:13 PM
Raymond James resumed coverage of Ally Financial with a Strong Buy rating and a
$55 price target, citing improving margins, stabilizing credit trends and stronger capital generation as catalysts for higher earnings and tangible common equity returns.
The firm expects Ally’s net interest margin to continue expanding as its balance sheet improves, while auto-credit trends show signs of recovery. Higher ROTCE and capital generation should also increase capacity for share buybacks.
Raymond James forecasts EPS of
$5.25 and
$6.50 for 2026 and 2027, respectively, and views the valuation as attractive at roughly 6.5x its 2027 EPS estimate. The
$55 target implies about 8.5x earnings and 1.1x forward tangible book value per share. Ally recently reported adjusted Q2 2026 net revenue of
$2.3 billion, up 10% year over year, while adjusted EPS of
$1.21 slightly missed analyst expectations.
$ALLY
