Update shared on 04 Nov 2025
Fair value Increased 0.74%Analysts have slightly increased their price target for Ally Financial, with updated expectations rising by $0.35 per share. This change is based on ongoing improvements in credit trends and the potential benefits of stabilizing auto markets.
Analyst Commentary
Recent updates from Wall Street provide a nuanced view of Ally Financial's outlook. Analysts have made both bullish and bearish revisions to their projections due to shifting market dynamics, credit trends, and sector-wide influences.
Bullish Takeaways
- Bullish analysts have raised price targets, reflecting increased confidence in Ally's credit performance and potential upside if auto tariffs lead to higher used vehicle prices and improved loss severities.
- Ongoing improvements in credit quality within the North American consumer finance segment are seen as supportive of near-term credit resilience and reduce downside risk to the stock.
- Projections for book value growth and anticipated share buybacks in 2026 add to the company's longer-term appeal and strategic flexibility.
- Recent concerns about industry peers are seen as overdone, with some firms highlighting Ally's distinct positioning in retail auto loan growth and stronger credit trends relative to competitors.
Bearish Takeaways
- Bearish analysts have slightly reduced price targets in response to expectations of a modest earnings miss, suggesting that upcoming results may not exceed investor expectations.
- While the overall sector outlook has improved, there is caution around the pace of auto market recovery and the potential for lingering interest rate headwinds.
- Some forecasters remain watchful regarding the stability of future credit trends, noting that uncertainties in the broader auto and finance ecosystem could temper near-term momentum.
What's in the News
- Ally Financial Inc. (NYSE:ALLY) was removed from the FTSE All-World Index, which could influence its visibility to global investors and impact passive investment flows. (Key Developments)
Valuation Changes
- Fair Value Estimate has risen slightly, moving from $47.71 per share to $48.06 per share.
- Discount Rate has increased from 11.97% to 12.28%, reflecting a minor adjustment upward in risk assumptions.
- Revenue Growth Estimate has edged down marginally, from 10.54% to 10.50%.
- Net Profit Margin is effectively stable, showing a slight increase from 19.06% to 19.08%.
- Future P/E Ratio is up modestly, changing from 11.50x to 11.72x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.