Goldman Sachs on Ally Financial (ALLY): 'shares do still represent good value for a long-term oriented investor'

Goldman Sachs analyst Ryan Nash reiterated a Buy rating and $42.00 price target on Ally Financial (NYSE: ALLY)

The analyst comments "ALLY provided an update at a conference today sending shares down over 15% on the back of higher credit loss expectations and a lower near-term net interest margin trajectory. While we believe this move was extreme, our 2025 estimates are coming down more than that given the lower margin trajectory and the uncertainty over where credit losses are headed. While we recognize that shares may move sideways in the near-term (akin to what happened to SYF in June 2016 or COF in July 2015), we don’t think this will have a meaningful impact on the long-term earnings power. In fact, the company noted that while the road to a 15% ROTCE is harder, they still feel confident that they can achieve it. While ALLY is likely to be a “show me” story over the next few quarters, we do believe that at < ~90% of stated TBV, shares do still represent good value for a long-term oriented investor."

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 $32.67 yesterday.

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