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. 被美國銀行證券分析師 Brandon Berman 升級，他預測公司的盈利波動將減少，淨利息收入的風險有限。目標股價上調至 46 美元。分析師預計公司在 2024 財年第二季度虧損將達到峯值，並預計 2024 財年每股收益為 2.99 美元。該股目前上漲 1.10%，報 38.99 美元

Ally Financial 獲得提振：分析師升級預測波動性減少，增長加速