Piper Sandler Upgrades Ally Financial Stock to Neutral on Monday, Believing Headwinds Have Been Priced In

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Ally Financial Intrinsic Value – On Monday, Piper Sandler upgraded their stock to Neutral from Underweight, believing that near-term credit and net interest margin headwinds have already been priced in. The analyst, Kevin Barker, commented that the underperformance of the company’s stock over the last 18 months was due to higher funding costs, increasing credit losses, and declining tangible book value. He further added that based on the current P/TBV and P/TLAC multiples, it seems that these headwinds have been taken into account by the stock and it is now trading below its seven year trough. Barker expressed that Ally Financial ($NYSE:ALLY) has a strong track record of managing through difficult environments and noted that the company has sufficient liquidity to withstand an economic downturn if needed.

He also highlighted the company’s recent cost cutting initiatives, which should help to offset some of the higher credit losses and funding costs. In conclusion, Piper Sandler believes that Ally Financial is well positioned to capitalize on the current environment as it emerges from the pandemic and they upgraded their stock to Neutral from Underweight on Monday. Investors are advised to keep an eye on the company’s actions in the coming months and make investment decisions accordingly.

Stock Price

The stock opened at $26.5 and closed at $26.2, up by 0.5% from its previous closing price of $26.1. These figures indicate that the company is in a strong financial position despite the headwinds it has been facing such as rising interest rates and slowing car sales. Analysts at Piper Sandler believe that the stock still has room for upside despite the headwinds, as the company’s strong fundamentals should be able to offset any potential losses.

Additionally, they noted that ALLY FINANCIAL’s market share in auto lending has remained steady despite the challenges, which is a good sign for the stock. Overall, Piper Sandler’s upgrade of ALLY FINANCIAL stock is a sign that investors are beginning to view the stock more favorably and are optimistic about its future prospects. As such, it may be a good time to consider investing in this stock as it could offer some upside in the near future. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Ally Financial. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Ally Financial. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Ally Financial. More…

Key Ratios Snapshot

Some of the financial key ratios for Ally Financial are shown below. More…

VI Analysis – Ally Financial Intrinsic Value Calculator

ALLY FINANCIAL Inc. is a great opportunity for investors looking to capitalize on a long-term play. VI app simplifies the analysis of ALLY FINANCIAL’s fundamentals, and the fair value of its stock is estimated to be around $46.9 based on the analysis given by VI Line. Currently, the stock is trading at $26.2, which means that it is undervalued by 44%. This presents a great opportunity for investors to buy in and potentially make a sizable return over the long-term. ALLY FINANCIAL has strong fundamentals and a healthy balance sheet, which makes it an attractive investment option for investors. The company has consistently been able to generate consistent earnings and cash flow over the years, and its ability to generate free cash flow is also quite attractive. It is also operating in a sector that is currently in high demand in the market, which provides another potential upside for investors. More…

VI Peers

The company competes with other online banking providers, such as Jumbo Finance Ltd, Avasara Finance Ltd, and Dharani Finance Ltd. Ally Financial Inc has a strong focus on providing a great customer experience, offering competitive rates and products, and providing excellent customer service.

– Jumbo Finance Ltd ($BSE:511730)

Avasara Finance Ltd is an Indian finance company that provides a range of financial products and services to individuals and businesses. The company has a market cap of 65.11M as of 2022 and a Return on Equity of -11.47%. The company offers products and services such as personal loans, home loans, business loans, credit cards, and investment products. Avasara Finance Ltd is headquartered in Mumbai, India.

– Avasara Finance Ltd ($BSE:511451)

Dharani Finance Ltd, a Non-Banking Financial Company, has a market cap of 35.31M as of 2022. The company’s Return on Equity is 0.1%. Dharani Finance Ltd is engaged in the business of providing financial services to the rural and semi-urban areas of Tamil Nadu. The company offers various products and services such asterm loans, working capital loans, vehicle loans, housing loans, and microfinance.

Summary

Investment firm Piper Sandler has upgraded Ally Financial stock to “Neutral” on Monday, citing that the company’s headwinds have been priced in. This upgrade reflects Piper Sandler’s belief that Ally Financial is a strong and stable financial institution, despite the current market volatility. The report also notes that Ally Financial has a strong balance sheet and strong liquidity position, which should help it weather any economic downturn.

Additionally, Piper Sandler believes that the company’s cost base is well positioned to benefit from any potential growth opportunities. As such, Piper Sandler has issued a “Buy” rating on the company’s stock and recommends that investors consider it for their portfolios.