JPMorgan analyst Richard Shane lowered the firm’s price target on Ally Financial to $27 from $30 and keeps a Neutral rating on the shares. Following a recent wave of downgrades in the consumer finance sector, the market seems "locked on already discounted risks, rather than casting a view out toward the next horizon," Shane tells investors in a research note. The analyst believes this is creating a "wave of investment opportunities" into the Q4 results. The reports "will be messy," with downside risk to earnings estimates, says the analyst. He thinks this will be most acute for the card issuers as peak seasonal and cyclical growth "collided" in Q4.
Published first on TheFly
See Insiders’ Hot Stocks on TipRanks >>
Read More on ALLY:
- Ally Financial downgraded to Hold from Buy at Jefferies
- Ally Financial call volume above normal and directionally bullish
- Ally Financial upgraded to Neutral from Underweight at Piper Sandler
- Buy/Sell: Wall Street’s top 10 stock calls this week
- Stephens specialty finance analyst to hold an analyst/industry conference call