** Shares of digital bank Ally Financial rise as much as 3%, last up 2.5% at $40.83
** J.P. Morgan upgrades ALLY to "neutral from "underweight"; raises PT to $45 from $39, a 13% upside to stock's last close
** Brokerage expects ALLY's risk-adjusted margins to steadily improve as higher yielding new loans replace less profitable and lower yielding loans from 2021 and 2022
** Adds that ALLY could reach its target of 4% net interest margin, a key measure of a bank's profitability, before mid-2025 if rate cuts materialize faster than expected
** JPM says new vehicle prices coming down and interest rates falling could unlock substantial pent-up demand in U.S. auto sales
** Auto financing makes up a significant portion of ALLY's earnings assets
** Eleven of 22 brokerages rate the stock "buy" or higher, eight "hold" and three "sell"; their median PT is $44 - LSEG
** Including session's moves, ALLY shares up 17% YTD
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))
Comments