Credit Suisse Reiterates Neutral, Raises PT On Ally Financial On Strong Capital Return

In a report published Friday, Credit Suisse analyst Moshe Orenbuch reiterated a Neutral rating on Ally Financial Inc. ALLY, and raised the price target from $24.00 to $25.00. In the report, Credit Suisse noted, "Ally was granted permission to repurchase $1.3 bn of the Series G preferred (beginning immediately) and $1 billion of the Series A preferred (we have assumed in early 2016). This is about $900mm more capital return than we had expected. Additionally, the company was approved to repurchase $500mm of TRUPS, and $200mm of premiums on higher cost debt. Given faster preferred stock retirement, we believe management will be able to return common capital to shareholder sooner-than-expected. To pay common dividends or repurchase common shares Ally must retire all Series G preferreds or achieve investment grade credit ratings from both S&P and Moody's." Ally Financial closed on Thursday at $21.34.