Ally Financial price target raised to $55 from $50 at Citi

Citi raised the firm’s price target on Ally Financial (ALLY) to $55 from $50 and keeps a Buy rating on the shares after updating the firm’s model, including changes to the way the EV lease-related tax benefits are recognized. The change lowers the firm’s FY25 and FY26 EPS estimates about 5%-10% with a tax rate now expected to be higher, partially offset by higher net interest income, the analyst tells investors. Ally remains the analyst’s top pick on the belief that “the risk/reward here is compelling,” the analyst added.