Wells Fargo has reduced its price target for Ally Financial (ALLY, Financial) from $34 to $32 while maintaining an Underweight rating on the stock. This adjustment follows a quarter marked by enhanced credit performance. Despite these improvements, Wells Fargo still views other options in the consumer finance sector as offering more value.
The financial firm expressed concerns about the potential risks to future earnings estimates for Ally Financial. Additionally, the suspension of share buybacks remains a significant consideration in their evaluation. Wells Fargo's revised outlook indicates a cautious stance on Ally Financial's stock, reflecting broader industry trends and potential growth limitations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Ally Financial Inc (ALLY, Financial) is $42.60 with a high estimate of $56.00 and a low estimate of $30.00. The average target implies an upside of 34.67% from the current price of $31.63. More detailed estimate data can be found on the Ally Financial Inc (ALLY) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Ally Financial Inc's (ALLY, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Ally Financial Inc (ALLY, Financial) in one year is $33.70, suggesting a upside of 6.54% from the current price of $31.63. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Ally Financial Inc (ALLY) Summary page.
