Goldman Sachs Starts Ally Financial (ALLY) at Neutral

Goldman Sachs initiated coverage on Ally Financial (NYSE: ALLY) with a Neutral rating and a price target of $26.00.

Analyst Eric Beardsley said, "ALLY is the largest non-captive auto lender in the US, with nearly $110bn of auto loans and leases and $150bn in total assets. While we see potential for significant longer-term upside as ALLY has a visible and formulaic path to ROE > 10% and potentially $3 normalized EPS (vs. $1.30 annualized at 1Q14), the timing to reach normalized returns is highly uncertain and dependent on the Fed’s approval of ALLY’s capital actions. Overall, the stock looks fairly valued today at 1.2x 1Q14 adjusted TBV of $20.62 and 14x our core (non-GAAP) 2015 EPS estimate of $1.83."

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 $24.45 yesterday.

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