Ally Financial upgraded to Outperform from Peer Perform at Wolfe Research

Wolfe Research analyst Bill Carcache upgraded Ally Financial to Outperform from Peer Perform with a $39 price target. In an environment where the probability of a mild recession or soft landing both appear plausible, Ally is well positioned to outperform in either scenario, the analyst tells investors in a research note. The firm expects the company to benefit regardless of the economic environment, with its retail auto loan yield migrating towards 10% as deposit pressures abate in a soft-landing scenario or its net interest margin expanding in a mild recession.