Morgan Stanley Reiterates Overweight Rating, Lowers Price Target On Ally Financial On Longer Path To Double-Digit ROE

In a report published Friday, Morgan Stanley analyst Cheryl M. Pate reiterated an Overweight rating on

, but lowered the price target from $30.00 to $27.00. In the report, Morgan Stanley noted, “With expected loss of a large portion of lease volume, expect longer trajectory to sustainable double digit ROTCE as Ally focuses on taking share in used & non-GM/Chrysler lending. Upside could come from proactive liability mgmt. We lower PT $3 to $27, remain OW.” Ally Financial closed on Thursday at $19.58.