Ally Financial price target lowered to $31 from $32 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on Ally Financial to $31 from $32 and keeps a Buy rating on the shares. Heading into the Q3 earnings reports, the analyst is “lukewarm” on the consumer finance stocks despite the recent underperformance. Credit losses are continuing to increase and the market has become concerned that this is no longer just “normalization,” the analyst tells investors in a research note. However, the stocks are currently “above mid cycle” credit losses and slowing loan growth, “which feels like it creates a decent entry point,” says Goldman.