Citi names Ally Financial as 'top pick', sees loan delinquency rate improve in H1

Ally Financial

30/09/2024 10:48

** Citigroup says shares of consumer lender Ally Financial
 ALLY.N , which have fallen 12% since a credit warning earlier
this month, are a "top pick"
    ** Expects loan delinquency rates to improve in first half
of 2025 and net interest margin to expand to over 4% the year
after, compared with 3.27% in the latest quarter
    ** The underperformance since management's recent commentary
on weaker credit trends in Q3 has created a very attractive
entry point -  Citi
    ** "Our borrower is struggling with high inflation and cost
of living, and now more recently, a weakening employment
picture," ALLY CFO Russell Hutchinson said earlier this month
    ** At least 11 brokerages have cut their price targets on
ALLY since the CFO's downbeat commentary
    ** Stock flat YTD

 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com))