Ally Financial added to Focus List at Citi

Citi analyst Keith Horowitz added Ally Financial to the firm’s Focus List while reiterating a Buy rating on the shares with a $50 price target. The shares have underperformed since management’s recent commentary on weaker credit trends in Q3, which has created a “very attractive entry point,” the analyst tells investors in a research note. The firm says the last six quarters of originations will see curtailment benefits, so while loss outlook is higher over next 12-18 months due to credit issues plaguing 2022 vintages, ‘Ally’s 2026 will see significant improvement on these short-duration assets.