Ally Financial selloff brings ‘very attractive entry point,’ says Citi

Citi analyst Keith Horowitz says the 18% selloff in shares of Ally Financial yesterday after the company provided an update on credit deterioration over the past six weeks and expected pressure on net interest margin brings a “very attractive entry point.” The net interest margin pressure is “simply a timing issue” as banks will struggle near-term with potentially rapid declines in rates, but for a liability-sensitive bank like Ally, the cuts should ultimately benefit NIM, the analyst tells investors in a research note. Citi views the stock selloff as “very surprising” and keeps a Buy rating on the shares with a $50 price target.