Ally Financial upgraded to Neutral at BofA as NIM pressures ease

BofA analyst Brandon Berman upgraded Ally Financial to Neutral from Underperform with a price target of $28, up from $24. Net interest margin, or NIM, pressures are starting to show signs of abating, even before the Fed signals a change in policy, the analyst tells investors. Management revised its FY23 outlook lower, as expected, though there were "several highlights during the quarter," including the fact that NIM is set to inflect upward in the second half after being likely to contract further in Q2, the firm added.