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Research Alert: CFRA Lowers Opinion On Shares Of Ally Financial Inc. To Hold From Buy
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Research Alert: CFRA Lowers Opinion On Shares Of Ally Financial Inc. To Hold From Buy
Mar 13, 2026 1:30 PM

04:00 PM EDT, 03/13/2026 (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 lower our 12-month target price by $16 to $40, 7.7x our 2026 EPS estimate, a discount to the peer average of 11.1x given ALLY's more volatile earnings. We lower our 2026 EPS by $0.43 to $5.22 and reduce 2027's by $0.28 to $6.19. We've lowered our outlook on ALLY as we believe recovery for auto loan providers will take longer than previously expected. While we still anticipate strong earnings growth in 2026, the operating environment appears to be weakening. Rising inflation expectations will likely dampen consumer demand and slow loan originations in 2026, following what was an improvement in 2025 (with quarterly originations exceeding $10B each quarter). Furthermore, the anticipated benefit from interest rate cuts is now less certain, as persistent inflation may prompt the Fed to maintain a more restrictive monetary policy stance. On a positive note, ALLY is better prepared for a potential downturn than in recent years, with its CET1 ratio at 10.2%, the highest level since 2021.

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