Ally Financial price target raised to $42 from $37 at BofA

BofA analyst Brandon Berman raised the firm’s price target on Ally Financial to $42 from $37 and keeps a Neutral rating on the shares. Recent price performance since Ally reported results on January 19 suggests investors are rewarding the stock for the bank’s 2025 earnings growth potential and net interest margin expansion story given that consensus cut 2024 EPS by 10% and BofA lowered its own 2024 EPS view by 12%, the analyst tells investors. While Ally’s balance sheet is positioned to benefit from lower rates, the firm believes near-term net interest margin expansion will be “limited,” the analyst added in a note titled “Curb your enthusiasm?”