Ally Financial retains buy recommendation at Morgan Stanley

• “Recovery rates are moderating as expected, driving slightly higher adjusted net losses month-over-month," sys analyst Betsy Graseck, reiterating an Overweight rating on Ally Financial (ALLY +0.2%), but pulling the $40 price target.
• "We look for continued moderation in recovery rates as used car pricing softens over the next couple of years, driving our view for credit costs moving back towards cycle average despite an improving economy /employment outlook."