Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - TD Cowen upgraded Ally Financial (NYSE:ALLY) from Hold to Buy on Monday, while raising its price target to $50.00 from $43.00. The stock, currently trading at $39.82 with a market capitalization of $12.26 billion, has shown strong momentum with a 28% gain over the past six months.
The upgrade follows Ally Financial’s third-quarter results, which TD Cowen believes demonstrate that both credit performance and margins can drive a return on tangible common equity (ROTCE) of approximately 14% by 2027. The company maintains a solid 3.01% dividend yield and has consistently paid dividends for 10 consecutive years.
The investment firm increased its earnings per share (EPS) estimates for Ally Financial to $3.80 for 2025 and $5.65 for 2026, up from previous projections of $3.60 and $5.60, respectively. TD Cowen also established a 2027 EPS estimate of $6.40.
TD Cowen noted that Ally Financial’s progress toward achieving mid-teens ROTCE had been delayed by higher interest rates and the credit environment, but the company’s recent results suggest it can now support above-consensus earnings in 2026-2027.
The new $50 price target represents approximately 8.8 times TD Cowen’s 2026 EPS estimate and 1.06 times the projected 2026 tangible book value per share.
In other recent news, Ally Financial Inc. reported its third-quarter 2025 earnings, exceeding analysts’ expectations. The company posted an adjusted earnings per share (EPS) of $1.15, surpassing the anticipated $1.00. Additionally, Ally Financial’s revenues reached $2.17 billion, outperforming the forecasted $2.12 billion. These results highlight the company’s strong financial performance for the quarter. Analyst reactions to these developments have not been detailed, but the positive earnings and revenue figures suggest a favorable view. This news comes amid broader investor interest in the company’s financial health and strategic direction. Ally Financial’s ability to beat market forecasts may influence future analyst assessments. The company’s recent performance could be a point of interest for stakeholders and investors alike.
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