BTIG Upgrades Ally Financial to Neutral Amid Strategic Moves; Analysts Expect Better-than-Expected Q2 2025 Performance

Ally Financial has been upgraded to Neutral by BTIG due to strategic reductions in online deposit rates expected to positively impact net interest margin in Q2 2025. Analysts anticipate better-than-expected financial performance and favorable guidance on net charge-offs for 2025. The average one-year price target is $43.66 with an average target implying an upside of 7.95% from the current price.

Ally Financial (NYSE:ALLY) has been upgraded to Neutral by BTIG, citing strategic reductions in online deposit rates that are expected to positively impact the company's net interest margin in Q2 2025. Analysts at BTIG anticipate better-than-expected financial performance and favorable guidance on net charge-offs for 2025 [1].

The upgrade comes ahead of Ally Financial's earnings report for the quarter ended June 2025, which is expected on July 18. While Wall Street anticipates a year-over-year decline in earnings on higher revenues, the consensus estimate is $0.78 per share, a 19.6% decrease from the previous year. However, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become more bullish on Ally Financial's earnings prospects. This has resulted in an Earnings ESP of +3.53% [2].

BTIG's upgrade is based on the bank's aggressive cuts to deposit rates, which are expected to boost net interest margin. Analyst Vincent Caintic noted that Ally Financial's net interest margin may beat the consensus estimate, and he wouldn't be surprised if the company guides to a better net charge-off for 2025 on its earnings call. The average one-year price target is $43.66, implying an upside of 7.95% from the current price [1].

Ally Financial's stock has been trading in the premarket session, with analysts expecting a positive EPS surprise. However, investors should also pay attention to other factors that could impact the stock's performance. The Earnings ESP Filter can help uncover the best stocks to buy or sell before they've reported, and the Zacks Earnings Calendar provides a comprehensive list of upcoming earnings announcements [2].

References:
[1] https://seekingalpha.com/news/4467102-synchrony-bread-ally-upgraded-affirm-prog-cut-at-btig
[2] https://finance.yahoo.com/news/ally-financial-ally-expected-beat-140004943.html