2024-04-18 20:18:44 ET
Summary
- Ally Financial's shares jumped 7% after reporting a strong quarter, adding to substantial gains over the past year.
- The company's profitability has been affected by higher funding costs and increased credit losses, but I expect to see sequentially growing earnings.
- Ally's deposit base has held up well due to its retail focus and attractive interest rates, and deposit price pressures are beginning to ease, which should increase NIM.
Shares of Ally Financial ( ALLY ) jumped 7% on Thursday after reporting strong quarter. This rally added to substantial gains of 43% over the past year for ALLY as credit losses have not been as bad as some feared. Shares have also rallied 44% since I rated them a buy last September , more than tripling the return of the S&P 500. In the process, they have surpassed my low $30’s price target. Given this, now is a natural time to re-evaluate Ally. I continue to be bullish....
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Ally Financial: Strong Q1 Results Point To Accelerating Earnings