01:30 PM EDT, 04/18/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by $4 to $48, 8.1x our 2025 EPS estimate, a discount to the peer average of 9.3x given ALLY's outsized exposure to the cyclical auto industry. We decrease our 2024 EPS by $0.62 to $3.46 and reduce 2025's by $0.10 to $5.95. ALLY posted Q1 adjusted EPS of $0.45 vs. $0.82 a year ago, $0.12 above consensus. Despite falling net financing revenue (-9% Y/Y), our confidence in ALLY's long-term prospects continues to improve. We believe opportunity for market share gains in consumer originations (+3%) are growing, as ALLY received a record 3.8 million auto applications. Additionally, net charge-offs of 1.55% rose just 35 bps vs. a 61-bp rise in Q4. Still, ALLY's net interest margin compressed 38 bps as its cost of deposits surged 105 bps. Looking at the balance sheet, loan balances rose 1%, while retail deposits jumped 5%. From a capital perspective, ALLY kept its CET1 ratio at a reasonable 9.4% vs. its pre-pandemic average of 9.1%-9.6%. Shares yield 3.1% vs. the S&P 500's 1.3%.