Ally Financial Gets Boost: Analyst Upgrade Predicts Less Volatility, More Growth
Portfolio Pulse from Lekha Gupta
BofA Securities analyst Brandon Berman upgraded Ally Financial Inc. (ALLY) to Buy from Neutral and increased the price target to $46 from $42, citing reduced future earnings volatility due to recent balance sheet initiatives. Berman expects limited risk to net interest income and a muted impact from potential rate cuts in FY24. The forecast includes a peak in losses in Q2 FY24, with EPS estimates for FY24 at $2.99, FY25 at $6.18, and FY26 at $6.49. Ally Financial's stock can also be accessed through RDIV and NUMV ETFs.
April 09, 2024 | 4:18 pm
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POSITIVE IMPACT
Ally Financial Inc. was upgraded to Buy from Neutral by BofA Securities, with a price target increase to $46 from $42, indicating a positive outlook on the company's future earnings and reduced volatility.
The upgrade by a major analyst and the increase in price target reflect a strong positive sentiment towards Ally Financial's future performance, likely leading to increased investor confidence and potential stock price appreciation in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Nuveen ESG Mid-Cap Value ETF (NUMV) is another way for investors to gain exposure to Ally Financial, potentially benefiting from Ally's upgraded outlook.
Given that NUMV holds Ally Financial, the ETF could see indirect positive impacts from Ally's upgraded outlook and future growth prospects, possibly making NUMV more attractive to investors.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Ally Financial through the Invesco S&P Ultra Dividend Revenue ETF (RDIV), which may see indirect benefits from Ally's positive outlook.
As RDIV includes Ally Financial in its holdings, the ETF could experience indirect benefits from the positive developments and outlook of Ally, potentially attracting more investors to RDIV.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50