Ally Financial price target raised to $37 from $33 at BofA

BofA raised the firm’s price target on Ally Financial to $37 from $33 and keeps a Neutral rating on the shares. Expectations for rate cuts along with an improving economic outlook would suggest Ally is “set up to be an obvious beneficiary” and while this “may be true, in theory,” its hedges that are only 15% mature in 2024 have converted Ally to being “asset sensitive in the near-term,” the analyst tells investors. Ally having likely reached trough earnings in Q4 and being set for growth to accelerate once the Fed starts cutting rates is reflected in the stock’s outperformance since the Fed’s “dovish pivot” in December, the analyst added.