Update shared on18 Sep 2025
Fair value Increased 1.39%Analysts have modestly raised Ally Financial's price target to $47.12, citing improving auto credit quality, a more stable macro environment, and enhanced net interest margins from lower online deposit rates.
Analyst Commentary
- Bullish analysts point to improving auto credit quality and positive trends in year-over-year delinquencies and charge-offs.
- Reduced interest rate tail risk and less macroeconomic volatility are supporting higher valuation assumptions.
- Anticipated share buybacks beginning in 2026 and ongoing book value growth contribute to upward price target revisions.
- Aggressive cuts to online deposit rates are enhancing net interest margin, with potential for better-than-expected results in 2Q25.
- Seasonal increases in loan balances and stable allowance levels, alongside better credit guidance, are improving the outlook for fundamentals.
What's in the News
- Ally Financial has rolled out its proprietary AI platform, Ally.ai, to over 10,000 employees to streamline daily tasks and boost productivity.
- The company has integrated Ally.ai into various business functions, including customer service, serving around 5 million calls and training 2,200 employees in the initial phase.
- Ally advanced AI adoption by joining the Responsible AI Institute, implementing strong data security, customer privacy, and rigorous model risk oversight.
- Required generative AI training, internal fluency resources, and ongoing collaborative sessions support responsible and effective AI use across the enterprise.
Valuation Changes
Summary of Valuation Changes for Ally Financial
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $46.47 to $47.12.
- The Discount Rate for Ally Financial remained effectively unchanged, moving only marginally from 11.65% to 11.51%.
- The Future P/E for Ally Financial remained effectively unchanged, moving only marginally from 11.43x to 11.57x.
Disclaimer
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