Wells Fargo Maintains Underweight Rating on Ally Financial (ALLY) Stock

Wells Fargo analyst Donald Fandetti maintained an Underweight rating on Ally Financial Inc. (NYSE:ALLY) with a $32 price target. The rating update came after CEO Michael Rhodes’ presentation at the Bernstein Strategic Decisions Conference on May 30.

Wells Fargo noted that the presentation was a “positive” update on Q2 Net Interest Margin (NIM), but it did not provide new specifics on Q2 auto credit. The firm, therefore, noted that it sees “better value and positive stock catalysts for other consumer finance stocks.”

An executive at a desk, surrounded by financial documents and a laptop.

The firm also stated that Ally Financial Inc.’s (NYSE:ALLY) share buybacks are currently on hold, and the ongoing higher interest rates are “thematically a relative headwind.” This indicates that, while there may be some beneficial aspects, the current market environment poses challenges for the company, justifying the Underweight rating.

Ally Financial Inc. (NYSE:ALLY) provides automotive financing and insurance services. Its operations are divided into the following segments: Automotive Finance Operations, Insurance Operations, Corporate Finance Operations, and Corporate and Other.

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