Ally Financial (ALLY) PT Raised to $74 at BofA Securities After Reporting Blowout EPS

BofA Securities analyst Brandon Berman raised the price target on Ally Financial (NYSE: ALLY) to $74.00 (from $69.00) after the company reported 2Q21 core EPS of $2.30, beating consensus estimates of $1.49 across the board.

The analyst stated "Total revenue grew 34% YoY, driven by strength in auto pricing and origination volumes, while expenses and provisions were lower than expected. We believe 2Q21 results offer investors greater clarity into ALLY’s ability to achieve its 2022/23 return targets. Mgmt. reiterated expectations to achieve 15%+ ROTCE in 2022/23, which assumes normalizing trends in used car prices, credit, etc. (Note: mgmt. increased its FY21 ROTCE target to 20%+/-, excl. the impact of reserve releases). However, the question of, “How long will this favorable operating backdrop within the auto market last?” looms."

while maintaining a Buy rating.

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