BofA Securities analyst Brandon Berman upgraded Ally Financial Inc. (NYSE:ALLY) to Buy from Neutral and raised the price target to $46 from $42.



The analyst expected the recent balance sheet initiatives to help reduce future earnings volatility. 



Berman saw limited risk to net interest income (NII) estimates if the Fed doesn’t cut rates in FY24 and the benefit from rate cuts to have a muted impact on net interest margin (NIM) in FY24.



The analyst forecasted fourth-quarter FY24 NIM of 3.57% (assuming three rate cuts) vs. 3.4%-3.5% guidance.



The analyst expected losses to peak in the second quarter of FY24 as they have materialized faster than those of the broader industry and are still rising, and it is more exposed to credits across the spectrum.



In the first quarter of FY24, the analyst estimated EPS of $0.23 vs. consensus $0.40 and expected NIM of 3.13% (down 7bps Q/Q) thanks to a 5 bps increase in deposit costs and softer lease yields.



Berman estimated EPS of $2.99 in FY24 (vs. consensus: $3.02), $6.18 in FY25 (vs. street view of $5.30) and $6.49 in FY26 (vs. $6.30 consensus).



Investors can gain exposure to the stock via Invesco S&amp;P Ultra Dividend Revenue ETF (NYSE:RDIV) and Nuveen ESG Mid-Cap Value ETF (BATS:NUMV).



Price Action: ALLY shares are up 1.10% at $38.99 at publication Tuesday.



Also Read: Ally Financial Taps Discover Financial Services Head Michael Rhodes As Its New CEO



Photo: Courtesy Ally Financial

ALLY

Ally Financial Inc. 被美国银行证券分析师 Brandon Berman 升级，他预测公司的盈利波动将减少，净利息收入的风险有限。目标股价上调至 46 美元。分析师预计公司在 2024 财年第二季度亏损将达到峰值，并预计 2024 财年每股收益为 2.99 美元。该股目前上涨 1.10%，报 38.99 美元

Ally Financial 获得提振：分析师升级预测波动性减少，增长加速