- Two positive drivers for the shares, says analyst Kevin St. Pierre, is increased ownership by long-term investors (traditional investment managers have been buying, hedge funds selling), and the stock's potential inclusion in the S&P 500.
- The company's market cap is now above the lower end of the S&P 500, he says, and stocks typically have both absolute and relative outperformance over the "announcement period."
- There's also the chance of a dividend in the not-too-distant future, with a 20% payout ratio possibly beginning in 2016's third quarter.
- Reiterating his Outperform rating and $29 price target for ALLY, St. Pierre trims his 2015 EPS estimate to $2.54 from $2.66, with the same for 2016.