JPMorgan analyst Richard Shane upgraded Ally Financial to Overweight from Neutral with a price target of $40, down from $46. The firm says opportunity has been created in the shares “when sentiment swings so rapidly.” Despite the recent disappointing outlook on credit and margins, the stock price already discounts most of the realistic credit and earnings scenarios for the next 18 to 24 months, the analyst tells investors in a research note. JPMorgan believes this creates a favorable asymmetric risk/reward profile for Ally Financial.
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