JPMorgan Downgrades Ally Financial (ALLY) to Underweight, 'as valuation run-up limits further upside and headwinds persist'

JPMorgan analyst Richard Shane downgraded Ally Financial (NYSE: ALLY) from Neutral to Underweight with a price target of $39.00 (from $37.00).

The analyst comments "ALLY’s NTM P/E multiple has increased ~3x turns since Sept 2023 as investor focus shifts from near-term headwinds to the company’s 4% NIM target by mid 2025. We believe the stock fully reflects this scenario, and we see limited upside potential based on the current valuation. ALLY’s stock price is not fully discounting risks from deteriorating credit, NIM compression, and unrealized securities losses. While near-term headwinds are likely to lessen from here, significant headwinds remain to achieving ALLY’s 4% NIM target."

For an analyst ratings summary and ratings history on Ally Financial click here. For more ratings news on Ally Financial click here.

Shares of Ally Financial closed at $39.02 yesterday.

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