BofA Global Research upgraded ALLY to “buy” from “hold”
Ally Financial Inc (NYSE:ALLY) stock is enjoying a boost today, after BofA Global Research upgraded the financial services name to “buy” from “hold,” with a price-target hike to $46 from $42. The firm sees the potential for better-than-expected earnings and noted its potential credit leverage may be underestimated. At last look, ALLY was up 1.2% at $39.05.
There is plenty of room for further upgrades, especially if Ally Financial’s April 18 earnings report indeed turns out better than estimated. Of the 20 brokerages in coverage, 11 carry a “hold” or worse rating on the stock. It’s also worth noting that ALLY has closed its last five post-earnings sessions higher.
Options traders, meanwhile, have been much more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ALLY’s 50-day call/put volume ratio of 1.58 ranks higher than 98% of readings from the past year.
The stock has pulled back since its 21-month high of $41.55 on March 21, though still up 11.9% year to date. Plus, the 40-day moving average, which has provided support since November, still lingers below.