SC - Ally Financial Santander Consumer USA rated new Buy at Deutsche Bank

Deutsche Bank initiates coverage of Ally Financial (ALLY) and Santander Consumer USA (SC), both with Buy ratings, citing the benign credit environment, high auto prices, and continued strong demand.Sees the two auto finance companies continuing "to report strong EPS growth in FY21 and the potential for strong price returns over the next year, even more with a more normalized car pricing environment."Sets ALLY price target at $65 and SC at $41.Quant ratings on ALLY and SC are both Very Bullish, while average Wall Street rating on ALLY is Very Bullish (11 Very Bullish, 9 Bullish) and on SC is Bullish (4 Very Bullish, 4 Bullish, 8 Neutral, 1 Bearish).In the past year, ALLY's total return of 224% outpaces SC's 132% and the S&P 500's 43% as seen in chart below.SA contributor Stone Fox Capital is more cautious on Ally after a booming quarter.

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Ally Financial, Santander Consumer USA rated new Buy at Deutsche Bank