Financial Stocks Experience Turbulent Week: Citi and 9 Others Show Potential.

Written by Emily J. Thompson, Senior Investment Analyst

ALLY-1.04%

WFC+2.23%

SCHW+2.22%

Source: Barron's

Updated: Jan 14 2026

0mins

Source: Barron's

Market Volatility: Financial stocks experienced significant fluctuations influenced by a Truth Social post from President Donald Trump and fourth-quarter earnings reports.
Emerging Winners: Despite the chaos, several financial stocks are positioned to benefit and emerge successfully from the current market turmoil.

ALLY

$41.99+Infinity%1D

Analyst Views on ALLY

Wall Street analysts forecast ALLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALLY is 53.71 USD with a low forecast of 48.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

15 Analyst Rating

12 Buy

3 Hold

0 Sell

Strong Buy

Current: 42.430

Low

48.00

Averages

53.71

High

70.00

Current: 42.430

Low

48.00

Averages

53.71

High

70.00

BofA

Buy

maintain

$42 -> $51

2026-01-09

Reason

BofA

Price Target

$42 -> $51

AI Analysis

2026-01-09

maintain

Buy

Reason

BofA raised the firm's price target on Ally Financial to $51 from $42 and keeps a Buy rating on the shares. While the firm appreciates "where there is skepticism" with shares trading at a 14% premium to the stock's pre-pandemic trading range, it still sees signs of positive price momentum and remains positive, highlighting that most of the recent outperformance compared to consumer finance names since mid-November came following the bank's $2B buyback authorization, which it calls "an endorsement of the earnings momentum."

UBS

NULL -> Buy

initiated

$56

2026-01-08

Reason

UBS

Price Target

$56

2026-01-08

initiated

NULL -> Buy

Reason

UBS initiated coverage of Ally Financial with a Buy rating and $56 price target. The market appears to undervalue the next phase of Ally's ROTCE improvement, which is projected to approach 14% in 2027 and rise further thereafter, the analyst tells investors in a research note. Gradual credit loss improvement, net interest margin expansion, share repurchases, and business simplifications-like exiting credit card and mortgage-are expected to drive higher returns, a cleaner balance sheet, and lower earnings volatility, UBS says.

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TD Cowen

Moshe Orenbuch

Buy

maintain

$50 -> $55

2026-01-08

Reason

TD Cowen

Moshe Orenbuch

Price Target

$50 -> $55

2026-01-08

maintain

Buy

Reason

TD Cowen analyst Moshe Orenbuch raised the firm's price target on Ally Financial to $55 from $50 and keeps a Buy rating on the shares. The firm adjusted targets in the specialty finance group as part of its 2026 outlook.

TD Cowen

Buy

upgrade

$50 -> $55

2026-01-08

Reason

TD Cowen

Price Target

$50 -> $55

2026-01-08

upgrade

Buy

Reason

TD Cowen raised the firm's price target on Ally Financial to $55 from $50 and keeps a Buy rating on the shares. The firm updated its price target to reflect is outlook in the Specialty Finance sector affected by macro economic factors and secualr growth in various areas of credit card, auto lending, student lending, non-prime lending, buy-now-pay-later, and lease to own.

About ALLY

Ally Financial Inc. is a financial services company. The Company’s segments include Automotive Finance operations, Insurance operations, and Corporate Finance operations. The Automotive Finance operations segment is engaged in providing automotive financing services to consumers, automotive dealers and retailers, companies, and municipalities. Its Insurance operations segment operates as a complementary automotive-focused business, offering both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. Its Corporate Finance operations segment provides senior secured asset-based and leveraged cash flow loans to U.S.-based middle-market companies, with a focus on businesses owned by private equity sponsors. The Company also includes a robust corporate finance business that offers capital for equity sponsors and middle-market companies.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.