Seeking Alpha

Ally earns a Buy rating from BTIG's Palmer

  • Ally Financial (ALLY) is at $24.60 in early action after pricing its IPO at $25 per share last night. Not too much of a surprise given some of his pre-IPO commentary, BTIG's Mark Palmer rates the stock a Buy. His $31 price target is 1.3x expected tangible book value in 2015.
  • "We believe ALLY's strategic plan, which is focused on increasing its return on average tangible common equity to double digits by YE15 (from 3% at YE13) by improving its cost of funding through liability management, reducing its operating costs and capitalizing on enhanced regulatory flexibility, is well within management’s ability to execute."
Comments (2)
  • Grant Dossetto
    , contributor
    Comments (192) | Send Message
     
    You know...I respect sales people just "doing their job" so to speak. In most cases there isn't much difference between your product and a competitor's. Success is how you pitch it. Then there are the sales people who will do the job and float a turd to people. Calling GMAC a buy is a flat out lie. It never will be a buy. Mark Palmer is behaving unethically.
    10 Apr 2014, 10:13 AM Reply Like
  • pmac2015
    , contributor
    Comments (21) | Send Message
     
    There is definitely a bull case for the stock. Their deposit base continues to grow which will lower funding costs. It's priced below book value so it's not expensive relative to other financial institutions on that metric. You do have to buy into the premise that general expenses can come down and they can achieve a 10% ROE.
    11 Apr 2014, 12:27 AM Reply Like
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