Compass Point maintained a Buy rating on Ally Financial (NYSE: ALLY), and cut the price target to $22.00 (from $26.00), following the company's 4Q earnings report. ALLY reported 4Q15 adjusted EPS of $0.52 versus the street's consensus of $0.51. ALLY originated $9.3B loans during the quarter. The growth was primarily driven by a higher contribution from used vehicles and growth channel dealers.

Analyst Lucy Webster commented, "We reiterate our Buy rating and adjust our price target to $22 from $26 on the shares of ALLY following 4Q earnings. Key drivers of our thesis remain intact, including lower funding costs from a greater contribution of deposit assets and a healthier contribution of higher yielding loans should continue to benefit ALLY going forward. In addition, we think that under 10% exposure to sub-620 FICOs should help dispel credit concerns that have affected broader auto lending peers. Combined, we believe these ROE levers drive EPS growth and the book value multiple higher. We also view the redemption of remaining Series A preferred shares as another positive catalyst over the short term. In addition, we believe that a 2016 capital plan that includes both share repurchases and a dividend will serve as a further catalyst to revalue shares higher. Shares are currently trading at 65% of 4Q15 adjusted tangible book, a valuation that is not reflective of the relatively muted subprime credit exposure and earnings growth trajectory for 2016."

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 $16.09 yesterday.