Evercore ISI Revises Ally Financial (ALLY) Price Target after Q4 EPS Update
Ally Financial Inc. (NYSE:ALLY) is included among the 13 Best Strong Buy Dividend Stocks to Invest in.
On February 5, Evercore ISI lowered its price recommendation on Ally Financial Inc. (NYSE:ALLY) to $51 from $53. The firm reiterated an Outperform rating on the stock. The revision followed updates to the firm’s EPS estimates after reviewing the company’s Q4 results.
During the Q4 2025 earnings call, CEO Michael Rhodes said Ally completed a strategic refresh during the year and delivered solid performance. He said the company stayed focused on making careful, deliberate decisions and executing with discipline. Ally continues to prioritize areas where it has strong competitive advantages and clear opportunities to grow.
Rhodes reported adjusted EPS of $3.81, which increased 62% from the prior year. Core return on tangible common equity reached 10.4%, improving by more than 300 basis points. He also noted that retail net charge-offs remained below 2% at year-end, reflecting stable credit performance. He said the company remains disciplined on expenses and capital, with a target net interest margin in the upper 3% range. As part of its capital return plans, Ally also approved a new $2 billion open-ended share repurchase program.
Loan growth remained steady throughout the year. Retail Auto and Corporate Finance loans increased 5% in 2025. The company originated $43.7 billion in consumer loans, with an origination yield of 9.7%. Rhodes said 43% of those loans came from the highest credit quality tier, which helps support portfolio stability. He also pointed to record application volumes and said growth in SmartAuction and Passthrough programs contributed to higher fee income.
Rhodes added that insurance written premiums exceeded $1.5 billion for the year, showing continued strength in that segment. Ally also expanded its funding base, ending 2025 with $144 billion in retail deposits and about 3.5 million customers.
Ally Financial Inc. (NYSE:ALLY) operates as a diversified financial services company, with business segments that include Automotive Finance, Insurance, and Corporate Finance.
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