BTIG downgrades Ally Financial to 'neutral' on worries about auto credit

Ally Financial

16/09/2024 12:18

** Brokerage BTIG downgrades consumer lender Ally Financial
 ALLY.N  to "neutral" from "buy" and removes its $44 price
target
    ** ALLY shares down 0.7% at $32.75 in premarket trading
    ** BTIG says macro auto lending data makes it incrementally
worried about further deterioration in ALLY's credit
    ** Adds that ALLY would have to tighten underwriting which
would slow down new originations
    ** Brokerage says that contrary to commentary from many
lenders, it does not believe the credit deterioration cited by
lender updates last week is limited only to the lower-end
consumers
    ** ALLY last week warned that credit challenges have
intensified over the current quarter as its borrowers struggle
with high inflation and cost of living
    ** BTIG says it is "uncomfortable" recommending investors to
buy ALLY currently as it doesn't anticipate any positive
catalysts for the rest of 2024
    ** As of last close, ALLY shares down 5.6% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))