Ally Financial downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Richard Shane downgraded Ally Financial to Underweight from Neutral with a price target of $39, up from $37. The stock’s valuation run-up limits further upside as headwinds persist, the analyst tells investors in a research note. The firm sees limited upside potential based on the current valuation. Ally’s stock price is not fully discounting risks from deteriorating credit, net interest margin compression, and unrealized securities losses, says JPMorgan.