In a report published Tuesday, Morgan Stanley analyst Betsy L. Graseck reiterated an Overweight rating on Ally Financial ALLY, but removed the $30.00 price target.
In the report, Morgan Stanley noted, “August data for ALLY's prime auto trusts showed credit trends in-line with seasonal expectations, with upticks in both net losses and DQs. Gross charge-offs were flat with year-ago levels at 0.82%, though recovery rates are starting to normalize. Annualized net loss rates rose 2bps m/m and 4bps y/y to 22bps, and total DQs were up 10bp m/m. Assuming typical September seasonality, ANLs at the prime trusts are tracking ~23bps in 3Q vs. an estimated 17bps in 2Q. August data from Ally's AFIN non-prime trusts (expected 9/22) will give a clearer picture into 3Q credit trends as it is a bigger driver of losses; we forecast total auto NCOs of 80bps for 3Q14, up 22bps from 2Q.”
Ally Financial closed on Monday at $24.04.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in