Ally Financial price target lowered to $37 from $46 at BofA

BofA analyst Brandon Berman lowered the firm’s price target on Ally Financial to $37 from $46 and keeps a Buy rating on the shares after a mid-quarter update on credit cresting and liability sensitivity disappointed on both topics. Retail auto credit deteriorated more than anticipated in Q3-to-date, while net interest margin, or NIM, commentary “skewed negative but is more nuanced than headlines suggest,” the analyst tells investors. While it is clear from the roughly 20% decline in shares on Tuesday that Ally “had been priced for perfection,” BofA believes this selloff is overdone as it notes that based on the CFO’s comments, the firm estimates risk to 2025 EPS to be between 10% and 15%.