Are Ally Financial Bulls Too Bullish or Are Analysts Too Cautious?
Ally Financial Inc. (ALLY) had two things working it for shares to rally on Tuesday. The first was that not all of the underwriting group was bullish as Ally's quiet period was in force. The second was that the broad market was in the tank, as Fed presidents were talking up the time that rate hikes could take place.
So, the question is whether the analysts were too cautious or whether the bullish analysts were too bullish.
24/7 Wall St. compiled the analyst calls that it seen, listed by the formal rating, but which firm, and what the price target is on each.
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The following ratings initiations were seen on Tuesday for Ally Financial:
Buy at Citigroup - $29 price target
Outperform at Keefe Bruyette & Woods - $30 price target
Overweight at Barclays - $28 price target
Overweight at J.P. Morgan - $30 price target
Overweight at Morgan Stanley - $30 price target
Hold at Deutsche Bank - $26 price target
Equal Weight at Evercore Partners - $26 price target
Neutral at BofA Merrill Lynch - $26 price target
Neutral at Credit Suisse - $27 price target
Neutral at Goldman Sachs - $26 price target
In late afternoon trading, Ally was down by 0.8% at $24.25 against a post-IPO range of $23.76 to $27.90. As a reminder, Ally shares closed down at $23.98 on its first day of trading, and that was after the 95 million share IPO priced at the low end of the $25 to $28 price range at $25 per share.
As a reminder, Ally's management said that the Treasury will likely be out of its ownership in Ally by the end of this year. The $2.4 billion IPO also reduced the treasury's ownership down to 17% from 37%.
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