SYF - Ally Synchrony get Outperform ratings ADS initiated at In-Line by Evercore ISI

Evercore ISI analyst John Pancari initiates coverage of three consumer finance companies, assigning Outperform ratings to Ally Financial (ALLY) and Synchrony Financial (SYF) and an In-Line rating to Alliance Data Systems (ADS).SYF is "well positioned to capitalize on strengthening consumer spending and eventual upturn in card receivables growth," Pancari said; also says its high-growth partnerships with such companies as Verizon, Venmo, and Walgreens bode well.The analyst says the surge in auto demand in 2020 plays to ALLY's strengths and sees "highly conducive used auto industry backdrop" persisting; sees upside potential to Street EPS estimates and ROTCE outlook.ADS's recent acquisition of BNPL lender Bread may be a substantial driver longer term, but Pancari sees near-term growth challenged. He's looking for "greater clarity on timing and confidence" on the company's growth trajectory.See ALLY, SYF and ADS's total return in the past year vs. the S&P 500 in chart below:Quant ratings on the

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Ally, Synchrony get Outperform ratings, ADS initiated at In-Line by Evercore ISI