Ally Financial initiated with a Market Perform at TD Cowen

TD Cowen initiated coverage of Ally Financial with a Market Perform rating and $28 price target. The stock’s valuation is attractive and its net interest margins should begin to rebound in early 2024, though capital return will be lower, the analyst tells investors in a research note. The firm adds that interest rates will likely be higher for longer than previously expected, so it expects Ally Financial’s margins to stabilize in early 2024 rather than late 2023.