Deutsche Bank Starts Ally Financial (ALLY) at Hold

Deutsche Bank initiated coverage on Ally Financial (NYSE: ALLY) with a Hold rating and a price target of $26.00.

Analyst David Ho said, "Ally Financial represents an interesting ROE recovery story within the consumer lending space. While there are many moving pieces, there is a path to 9-10% ROTCE by 2015 (vs. 7% currently) from lower expenses, lower funding costs, and some capital actions, in our view. However, we believe upside to returns (and the stock) will depend on more aggressive capital deployment (which we believe will be further out) and better underlying revenue growth (which may be difficult). We believe the valuation is fair at the current ROE/earnings trajectory."

For an analyst ratings summary and ratings history on Ally Financial click here. For more ratings news on Ally Financial click here.

Shares of Ally Financial closed at $24.45 yesterday.

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