
Ally Financial (ALLY) Stock Forecast & Price Target
Ally Financial (ALLY) Analyst Ratings
Bulls say
Ally Financial demonstrates a stable growth trajectory in its consumer auto loan portfolio, which slightly increased to $83.9 billion, indicating resilience in a key segment of its business. The firm is expected to benefit from an improving margin and enhancements in retail auto credit, driving higher returns and earnings through 2025. Additionally, Ally's core insurance line showed strong performance with a year-over-year increase of approximately 5.5% to $364 million, further contributing to the diversification and stability of its revenue streams.
Bears say
Ally Financial has experienced a decline in net financing revenues, which decreased 2.1% sequentially to $1.48 billion, primarily due to slight reductions in earning assets despite a marginal increase in margins. Additionally, the commercial auto loan portfolio shrank by 5.9% to $21.6 billion, indicating potential weakness in demand within this segment. The company's reliance on the auto industry's health presents significant risk, as any deterioration in credit conditions or asset quality could lead to increased provisions for loan losses, thereby compromising earnings potential and capital stability.
This aggregate rating is based on analysts' research of Ally Financial and is not a guaranteed prediction by Public.com or investment advice.
Ally Financial (ALLY) Analyst Forecast & Price Prediction
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