Ally Financial price target raised to $37 from $28 at Compass Point

Compass Point raised the firm’s price target on Ally Financial to $37 from $28 and keeps a Neutral rating on the shares. The company’s confidence in its medium term ability to archive a $6 earnings per share run-rate, 4% net interest margin, and a mid-teens return on capital are positives that are still not well priced into the stock, the analyst tells investors in a research note. However, the firm says that given the recent move higher in interest rates, the timeline to achieving a 4% NIM is likely pushed out towards the end of 2025.