FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Ally: Q1 Earnings Beat As Credit Quality Improves

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

ALLY posted solid Q1 results, with operating EPS of $1.11 vs. $0.58 in the prior year, beating consensus by $0.17, while revenue of $2.10B missed consensus by 2%. Net interest margin expanded 17 bps Q/Q to 3.48%, outperforming many peer banks that saw contraction, reflecting structural benefits from balance sheet optimization and disciplined deposit pricing strategy. Credit quality continued to improve, with net charge-offs falling 29 bps to 1.21% and retail auto delinquencies declining 17 bps to 4.60%, demonstrating disciplined underwriting benefits. The $467M provision for credit losses was primarily due to reserve builds from asset growth rather than credit deterioration. Its strong capital position, with a CET1 ratio of 10.1% (up 60 bps) and liquidity of $65.8B, provided strategic flexibility for the $147M in share repurchases executed. The digital banking platform maintained strong momentum with 68 consecutive quarters of customer additions, reaching 3.5M retail deposit customers and $146B in balances.

Related Articles

Research

Research Alert: CFRA Maintains Buy Rating On Shares Of Dell Technologies Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our price target from $166 to $239, 16x our FY 28 (Jan.) EPS view, above DELL's three-year average (~11x) on AI upside. We raise our FY 27 EPS view by $0.31 to $12.80 and FY 28's by $0.49 to $14.91. Global AI data center spending continues to strengthen, and we expect DELL will continue capitalizing on this momentum as it builds its reputation in the AI server space. We also think server peer SMCI's recent export control issues could see some of its non-hyperscaler business shift toward DELL, providing upside to recent guidance, while recent takeover rumors (despite being denied by NVDA) highlight DELL's value as a critical infrastructure provider and provide further support for an above-historical multiple. The ongoing memory shortage remains a key risk, but with supply fully secured to support FY 27 guidance, we doubt a significant hit to the company's near-term margin outlook. We expect its relationship with memory makers will allow for favorable supply allocation vs. peers next year as well.

$DELL
Research

Research Alert: Vale S.a. Posts Strong Q1 2026 Operating Results

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Vale posted solid Q1 2026 (operating) results, with iron ore production of 69.7Mt (+3.0% Y/Y) and energy transition metals delivering double-digit growth, including copper at 102.3kt (+12.5% Y/Y) and nickel at 49.3kt (+12.3% Y/Y). The performance marked multiyear highs across core assets, with S11D achieving another record and Southeastern System surging 19.2% driven by Capanema's ramp-up. We view the operational momentum as validation of Vale's capital strategy and positioning for long-term value creation in energy transition metals. Management maintained 2026 guidance, expecting upper end of 335Mt-345Mt iron ore targets as Capanema reaches full capacity. Copper realizations surged 47.8% Y/Y to $13,143/t while iron ore premiums expanded 29.2%, demonstrating portfolio optimization benefits. We believe base metals are becoming increasingly important value drivers as Novo Carajas advances, though key watch items include project execution and iron ore premium sustainability.

$VALE
Research

Research Alert: CFRA Keeps Buy Opinion On Shares Of Albertsons Companies, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We keep our 12-month target at $21, based on 8.8x our FY 27 (Feb.) EPS of $2.38 (raised from $2.36; FY 28 initiated at $2.64). This multiple is near its long-term mean of 9.1x but remains a discount to its closest publicly-traded peer Kroger (~13x). Pharmacy headwinds from the Inflation Reduction Act are weighing on identical sales this fiscal year, though they are benefiting margins through a mix shift toward higher-margin generics. Margins should also improve with better digital profitability, easing GLP-1 pressure, and ongoing productivity initiatives. We expect identical sales growth to remain pressured in May-Q due to egg deflation, with both growth and profitability improving in subsequent quarters. We also believe ACI's investments in value, including lower prices and targeted promotions, should begin to drive an improvement in core grocery trends as the year progresses. Our Buy view reflects double-digit total shareholder return potential, including share repurchases and a ~4% dividend yield.

$ACI