JPMorgan raises Ally Financial stock price target to $45 on strong Q2 results

Published 21/07/2025, 11:34
JPMorgan raises Ally Financial stock price target to $45 on strong Q2 results

Investing.com - JPMorgan has raised its price target on Ally Financial (NYSE:ALLY) stock to $45.00 from $44.00 while maintaining an Overweight rating following the company’s second-quarter earnings report. The stock, currently trading at $39.88, appears fairly valued according to InvestingPro analysis.

Ally Financial reported adjusted earnings per share of $0.99 for the second quarter of 2025, exceeding JPMorgan’s estimate of $0.82 and the consensus forecast of $0.81. This positive momentum is supported by eight analysts revising their earnings estimates upward, according to InvestingPro data, which offers 6 additional exclusive insights about ALLY’s performance.

The financial services company maintained its net interest margin guidance for 2025 while narrowing its net charge-off guidance and lowering its average earning assets guidance for the year.

JPMorgan noted that Ally Financial could potentially see improved credit performance if auto tariffs increase used vehicle prices and lower loss severities.

The new price target of $45 represents a potential annualized total return of approximately 12.0% according to JPMorgan’s analysis, which is based on a December 2026 timeframe.

In other recent news, Ally Financial reported strong financial results for the second quarter of 2025, with earnings per share of $0.99, surpassing analyst expectations of $0.81. The company’s revenue also exceeded forecasts, reaching $2.1 billion, highlighting a robust operational performance. Despite these positive results, BofA Securities lowered its price target for Ally Financial from $44 to $43, maintaining a Buy rating. The adjustment followed concerns about the bank’s near-term asset sensitivity, despite improved credit trends and a positive earnings outcome. Ally Financial’s management expects the fiscal year 2025 net interest margin to be at the higher end of its 3.40%-3.50% range, even with anticipated interest rate cuts. The company continues to see growth in consumer auto originations and digital banking customers, with auto originations reaching $11 billion, marking its highest quarterly volume. Additionally, Ally Financial’s digital bank expanded its customer base to 3.4 million, marking 65 consecutive quarters of growth. These developments indicate a strong strategic focus and execution, positioning Ally Financial for continued growth.

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