Ally Financial price target raised to $49 from $46 at RBC Capital

RBC Capital analyst Jon Arfstrom raised the firm’s price target on Ally Financial to $49 from $46 and keeps an Outperform rating on the shares after its Q2 reanings beat. The company’s fundamentals were driven by margin improvement, stable balance sheet trends, and seasonally lower losses, and the management remains confident in the outlook, the analyst tells investors in a research note. RBC adds that Ally should produce consistent margin expansion in the coming quarters, which is the “primary driver” of its expected higher earnings and returns.