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Ally Financial price target raised to $45 from $40 at RBC Capital

RBC Capital raised the firm’s price target on Ally Financial (ALLY) to $45 from $40 and keeps an Outperform rating on the shares as part of a broader research note previewing Q2 results for U.S. Consumer names. The firm expects fundamentals to be driven by “healthy though modest” consumer activity, seasonally higher loan balances, and improving credit metrics, the analyst tells investors in a research note. The monthly data continues to show improving year over year delinquencies and charge-off metrics, which alongside healthy qualitative reserves and a less volatile macro should support mostly stable allowance levels, RBC added.

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